IBM stock loses momentum as AI investment concerns pressure sentiment
IBM failed to establish itself above $240 and has come under renewed selling pressure. At the same time, a broader risk is building across the technology sector around the scale of AI investment and the potential returns on that spending.
Growing concern over the size of AI investment is adding another headwind for IBM. According to calculations by The Wall Street Journal, off-balance-sheet investment commitments among the largest U.S. AI companies have reached roughly $3 trillion, while combined capital expenditure stands at around $600 billion.
The gap is intensifying the debate over how quickly massive investments in AI infrastructure can generate adequate returns. Against this backdrop, financial analyst Alex Krüger described the current environment as the largest bubble in stock market history.
IBM tests key support after losing momentum near $240
As noted previously, $240 was the key resistance level for IBM. The stock failed to establish itself above that threshold and subsequently pulled back to $234.22.
For today’s trading session, $230.90 becomes the key support. A decisive break below this level could open the way toward $225, where the gap formed on May 20 begins.
If the price stabilizes around $230.90 and buyers manage to defend the level, however, the probability of another local recovery attempt would increase. In that case, the stock could once again turn toward $240.
Recovery still lacks enough momentum to break higher
Despite the recent rebound from the previous decline, IBM has yet to establish sustained upside momentum. The failed attempt to hold above $240 suggests that the current fundamental backdrop has not been strong enough to push the stock back toward higher levels.
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