IBM witnessed a staggering 10% crash in its stock price, wiping out $31 billion in market capitalization after Anthropic announced that its Claude AI can now handle complex legacy code conversions. The tool, ‘Claude Code,’ is specifically designed to modernize COBOL systems—a core business segment for IBM’s mainframe and consulting divisions. The sudden sell-off reflects deep-seated fears that high-margin maintenance contracts for trillion-dollar legacy systems could be disrupted by highly efficient, autonomous AI tools, marking IBM’s steepest decline in over two decades.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation, or a solicitation to buy or sell any securities. The views expressed are those of the author and do not represent the official position of Benzinga India. Readers should consult a SEBI-registered financial advisor before making any investment decisions. Benzinga India and its authors do not hold any positions in the securities mentioned in this article unless explicitly stated.
