IBM Stock Slides as Traders Take Profits After Record Rally

International Business Machines (IBM) stock slid 3.1% in morning trading as investors locked in gains following an extended rally.

The shares had surged approximately 40% from their late-July lows, partly fueled by excitement around its Anderon subsidiary finalizing a $1 billion research and development award under the CHIPS and Science Act with the U.S. Department of Commerce.

However, with that milestone now confirmed, traders appear to be rotating out of the position in a classic 'buy the rumor, sell the news' fashion.

The company's management had also trimmed its full-year 2026 constant-currency revenue growth outlook to a range of 4 to 5 percent, down from a prior expectation of more than 5 percent.

This revision has continued to weigh on sentiment since it was announced alongside second-quarter results.