MU, SNDK, SKHY, WDC Stocks Drop Overnight: AI Memory Giants Suffer Reversal As IBM-Driven Rally Fades
Memory stocks including Micron (MU), SanDisk (SNDK), SK hynix (SKHY), and Western Digital (WDC) tumbled overnight, extending an 8-9% Wednesday decline despite broader market gains. The selloff appears driven by profit-taking after Tuesday's rally was sparked by IBM CEO Arvind Krishna's comments that clients were shifting capex toward AI servers, storage, and memory to secure supply-constrained infrastructure.
Why it matters: Analysts remain bullish on the sector, with KeyBanc raising its Micron price target to $1,750 and noting that tight HBM3e/HBM4 supply is expected to persist through 2027, supporting long-term pricing power.
Why Did IBM, ORCL, SMR Stocks Drop To 52-Week Lows Today?
IBM, Oracle, and NuScale Power all hit fresh 52-week lows on July 16, 2026, as investors grew skeptical that heavy AI-related capital spending will deliver sufficient financial returns. IBM fell to $204.44 after Argus cut its price target to $280 from $360, citing underestimated component cost pressures and enterprise customers shifting spend from traditional software to AI infrastructure; the stock is down 26% year-to-date.
Why it matters: Oracle tumbled 6% to $123.66 amid concerns over aggressive cloud infrastructure capex, negative free cash flow, and an S&P credit rating downgrade to BBB-, while NuScale Power dropped 8% to $7.52 on doubts about long timelines for small modular reactor development.
IBM Stock's Historic Selloff: Buy the Dip Ahead of Q2 Earnings, or Is It Too Risky?
IBM stock plummeted 25% in one of its worst single-day declines in history after the company issued a preliminary Q2 earnings warning ahead of its July 22 report, citing weaker-than-expected enterprise spending and delayed customer contracts. IBM's Q2 revenue is expected at approximately $17.2 billion versus the $17.85 billion consensus, with adjusted EPS of $2.93 missing the $3.02 estimate, driven by softness in Software and Infrastructure segments and customers reallocating budgets toward AI infrastructure investments.
Why it matters: Investors will look to the full Q2 report for updated full-year guidance, Red Hat growth trends, AI consulting bookings, infrastructure demand outlook, and free cash flow plans, while IBM maintains its long-term AI strategy centered on Watsonx and Red Hat hybrid cloud.
IBM Stock's Historic Selloff: Buy the Dip Ahead of Q2 Earnings, or Is It Too Risky?
IBM stock plunged 25% in a single day after issuing a preliminary Q2 earnings warning, with revenue expected at ~$17.2B versus $17.85B consensus and adjusted EPS of ~$2.93 versus $3.02 expected. The shortfall was driven by weaker Software and Infrastructure segments, a ~7% year-over-year infrastructure revenue decline, and enterprise customers reallocating budgets toward AI infrastructure (servers, networking, storage) rather than traditional software licenses and mainframe upgrades.
Why it matters: Despite the selloff, IBM's long-term AI strategy via Watsonx and Red Hat remains intact, and the stock's forward P/E compressed to 17x from multi-year highs, offering a discount to the S&P 500's 23x average, though the official Q2 report on July 22 will be critical for confirming whether delayed deals are timing issues or weakening demand.
IBM Stock Plunges 25% After Revenue Warning; Law Firms Launch Securities Fraud Probe
IBM shares crashed 25% in a single session after its CEO issued a pre-market warning revealing Q2 revenue of $17.2 billion, well below the $17.86 billion consensus estimate. The reversal came just one day after glowing coverage including a Jim Cramer 'buy' call on Mad Money, raising questions about whether IBM's prior guidance painted an inaccurate picture.
Why it matters: Multiple law firms announced securities fraud investigations by Tuesday afternoon, while Trefis maintains a $283 price target implying 34% upside from the post-crash level of ~$217.
Extreme IBM put option gains of nearly 150,000% highlight market volatility
A Reddit user reports unprecedented gains on IBM 07/17 245P puts, with one contract worth $2 surging to $3,000 and another $40 position turning into $30,000. The post compares the event to the SPY 0dte call spike after the 90-day tariff pause tweet in April 2023.
Why it matters: The user encourages traders to seek opportunities during periods of high volatility.
IBM's Q2 earnings may be more significant than Google and Tesla reports
Yahoo Finance suggests IBM's upcoming Q2 earnings could carry greater importance than those of Google and Tesla. The report is currently awaiting editor or agent analysis for market impact.
Cybersecurity stocks rise as IBM CEO highlights growing threats
Shares of cybersecurity firms CRWD, PANW, ZS, and OKTA received a boost after the IBM CEO flagged rising concerns over digital threats. The positive sentiment in the sector follows the executive's comments on the increasing importance of cybersecurity for businesses.
Should You Buy, Sell or Hold IBM Stock Before Q2 Earnings?
IBM reports Q2 earnings on July 22 with consensus EPS of $3.02 on $17.66B revenue; 2026 earnings estimates have declined 0.56% to $12.33/share over the past 60 days. IBM has beaten estimates for four consecutive quarters with a 6.15% average surprise, but its current ESP of -0.33% and Zacks Rank #3 suggest no beat is expected this quarter.
Why it matters: Strategic partnerships with OpenAI and Google Cloud, plus new Red Hat AI offerings, are boosting Software and Consulting segments, but IBM faces intense competition from AWS, Azure, and Anthropic's Claude Code, with its stock down 23.4% over the past year versus the industry's 194.7% gain.
IBM's AI Spending Warning Triggers Historic Stock Selloff
IBM shares plunged 25.2% on July 14, 2026, one of its steepest single-day declines in decades, after the company warned that customers are redirecting technology budgets toward AI infrastructure and delaying traditional software and IT spending. The selloff was not driven by weak earnings—IBM beat Q1 estimates with $1.91 adjusted EPS vs $1.81 consensus and revenue of $15.92B—but by management's signal that the AI investment cycle is reshaping enterprise tech priorities.
Why it matters: IBM's stock is down 26.7% year-to-date while industry peers AMD and HPE have gained 156% and 106.4% respectively, highlighting a growing divide between AI infrastructure beneficiaries and legacy enterprise IT companies.
Trader scores $158k on IBM call options after buying the dip
A trader invested $200k in IBM 220c options expiring August 21 after waiting for three consecutive red days. The position was held for a short time, but a strong upward move delivered approximately $158k in profit within hours.
Why it matters: The trader described the quick gain as a gift and did not plan to exit so soon.
IBM sell-off seen as overreaction by retail traders
A Reddit user on WallStreetBets argues the recent drop in IBM stock is an overreaction unless the company is hiding a major crisis. The user describes the stock as 'super oversold' at current levels.
Why it matters: The post reflects a contrarian sentiment among some retail investors amid the sell-off.
IBM CEO defends AI strategy after earnings miss and stock drop
IBM's CEO responded to an earnings shortfall and a historic stock plunge. He stated that the company's AI strategy remains the correct path forward.
IBM rises despite Q2 earnings miss as prior profit warning cushions reaction
IBM shares gained 3% after the company reported a Q2 earnings miss. Investors appear to be focusing on the prior profit warning, which may have tempered expectations.
Oppenheimer downgrades IBM after sharp post-earnings drop
Oppenheimer downgraded IBM following a sharp drop after its earnings report. The downgrade carries a warning about the implications for IBM's stock.
Oppenheimer Downgrades IBM After Earnings Miss Triggers Sell-Off
Oppenheimer has downgraded IBM stock following an earnings miss. The earnings miss triggered a massive sell-off in the stock.
IBM stock plunges over 25% on preannounced earnings
IBM shares closed down more than 25% after the company preannounced its earnings results. The sharp decline reflects a significant negative market reaction to the preliminary financial data.
IBM Lowers Revenue Forecast After Record Stock Decline
IBM has cut its revenue outlook following a historic drop in its stock price. The news was reported by Barron's and is awaiting further analysis on market impact.
IBM presents a buying opportunity after recent decline
Seeking Alpha describes IBM as a timely buying opportunity following a collapse. The article suggests the current downturn may offer a favorable entry point for investors.
Jim Cramer gives bullish take on IBM stock
Jim Cramer shared a strong verdict on IBM stock for investors. The commentary comes from TheStreet and was sourced via Google News.