Fears surrounding artificial intelligence's impact on traditional business models recently led to significant market shifts. IBM's stock experienced its largest drop since 2000, falling 13.2% on February 23, 2026. This decline followed AI startup Anthropic's announcement that its Claude Code tool can automate COBOL modernization, a key profit area for IBM's legacy systems business. The development threatens to reduce the need for expensive consultants, potentially completing updates in months instead of years. This broader concern about AI's disruptive potential also contributed to a dip in the crypto market, with Bitcoin falling to $64,000.
In contrast, Thomson Reuters saw its shares jump nearly 12% on February 24, 2026, after announcing that one million legal professionals now use its AI-powered solutions like CoCounsel, Westlaw Edge, and Checkpoint Edge. The company leverages its extensive content and validation logic to provide trusted AI tools for legal and tax professionals, demonstrating successful adaptation to the AI era. This positive market reaction highlights investor optimism for companies effectively integrating AI into their core services.
Nvidia continues to dominate the AI hardware sector, reporting a massive 262% increase in revenue for the first quarter of fiscal year 2025, reaching $26 billion. Its data center segment, crucial for AI chips, surged 427%. Nvidia also invested $2 billion in CoreWeave, a company building data centers for AI processing, which saw sales jump 133% to $1.3 billion in Q3 2025. However, CoreWeave faces risks including inconsistent profitability, rising operating expenses, and a high concentration of sales from just two customers.
Amazon is significantly expanding its AI infrastructure, planning a $12 billion investment in Louisiana to build new data center campuses. This initiative, in partnership with STACK Infrastructure and SWEPCO, includes commitments to public water infrastructure and new solar energy projects. These investments underscore the growing demand for AI processing capabilities, with Amazon expecting its capital spending to reach $200 billion in 2026. Meanwhile, ABB is also positioned to benefit by providing electrification and automation solutions for AI data centers, though its stock's high valuation presents potential risks.
The broader US stock market saw stabilization on February 25, 2026, after an AI-driven selloff the previous day impacted companies like American Express, CrowdStrike, Oracle, Visa, and Mastercard. IBM continues to face challenges in the AI race, lagging behind competitors such as Microsoft and Alphabet, despite its investments in AI research. Investors are now looking ahead to key earnings reports from companies including Nvidia and Salesforce for further market direction. Even in specialized financial markets, AI is making inroads, with technical data and AI-generated trading signals available for entities like Atrium Mortgage Investment Corporation (AI:CA).
Key Takeaways
- IBM's stock plummeted 13.2% on February 23, 2026, its largest drop since 2000, following Anthropic's announcement of its Claude Code tool for COBOL modernization.
- Anthropic's Claude Code tool can automate COBOL modernization, threatening a key profit area for IBM's legacy systems maintenance business.
- Thomson Reuters' shares jumped nearly 12% on February 24, 2026, as 1 million professionals adopted its AI-powered legal and tax solutions like CoCounsel and Westlaw Edge.
- Nvidia reported a 262% increase in revenue for Q1 FY2025, reaching $26 billion, with its data center segment (AI chips) surging 427%.
- Nvidia invested $2 billion in CoreWeave, an AI data center company, which saw 133% sales growth to $1.3 billion in Q3 2025 but faces profitability and customer concentration risks.
- Amazon plans to invest $12 billion in Louisiana for new data center campuses to support AI growth, including commitments to public water infrastructure and solar energy projects.
- US stock futures stabilized after an AI-driven selloff impacted companies like IBM and American Express, with investors awaiting earnings from Nvidia and Salesforce.
- IBM struggles in the AI race, lagging behind competitors like Microsoft and Alphabet, despite significant investments in AI research.
- ABB provides electrification and automation solutions for AI data centers but faces valuation risks due to its significant stock rise.
- AI-generated trading signals are available for Atrium Mortgage Investment Corporation (AI:CA), showing 'Neutral' near-term and 'Strong' mid and long-term ratings.
Bitcoin drops to $64,000 as AI fears hit IBM stock
Bitcoin's price fell back to $64,000 as fears about artificial intelligence impacting business models grew. IBM's stock dropped 11% after AI company Anthropic announced its Claude Code tool can automate COBOL modernization. This AI development threatens a key profit area for IBM, which relies on maintaining older computer systems. The crypto market also suffered, with Bitcoin and other major cryptocurrencies seeing declines. Some Bitcoin miners that also run AI infrastructure saw their stocks rise.
IBM shares plummet 13.2% on AI threat to legacy systems
IBM's stock experienced its biggest drop since 2000, falling 13.2% on February 23, 2026. This sharp decline followed AI startup Anthropic's announcement that its Claude Code tool can modernize COBOL, a programming language used on IBM mainframes. Anthropic stated that AI can help teams update COBOL code in months instead of years, potentially reducing the need for expensive consultants. Software stocks have been volatile due to AI advancements, with investors concerned about how these tools might affect existing business models.
IBM stock drops most since 2000 after AI tool targets COBOL
IBM's stock fell 13.2% on February 23, 2026, marking its largest single-day drop since October 18, 2000. The decline occurred after AI company Anthropic announced its Claude Code tool can automate the modernization of COBOL. COBOL is a programming language widely used in banking, insurance, and government systems running on IBM mainframes. Anthropic stated that AI can significantly speed up the process of updating COBOL code, which traditionally required years of work by consultants.
Thomson Reuters stock soars as 1 million professionals use AI tool
Thomson Reuters shares jumped nearly 12% on February 24, 2026, after the company announced that 1 million legal professionals are now using its AI-powered legal solution, CoCounsel. This AI tool helps with legal research and litigation tasks, integrating with programs like Westlaw and Microsoft 365. Despite previous stock declines due to AI concerns, Thomson Reuters is adapting by leveraging its extensive content and validation logic. CEO Steve Hasker emphasized that customers are choosing trusted AI solutions when their reputation and data are at stake.
Thomson Reuters AI adoption hits 1 million users
Thomson Reuters stock rose significantly on February 24, 2026, following the announcement that one million professionals are now using its artificial intelligence solutions. These include AI-powered legal research tools like Westlaw Edge and AI-assisted tax platforms such as Checkpoint Edge. The company has invested heavily in AI to improve its services for legal, tax, and business professionals, aiming to boost efficiency and decision-making. Investors appear optimistic about Thomson Reuters' AI strategy and its potential for future growth, seeing strong market demand for these AI-powered solutions.
CoreWeave stock faces risks despite strong sales and Nvidia investment
CoreWeave, a company that builds data centers for AI processing, saw its sales jump 133% to $1.3 billion in the third quarter of 2025. Nvidia recently invested $2 billion in the company. However, CoreWeave is not consistently profitable, and its operating expenses have increased significantly. A major risk is that 77% of its sales at the end of 2024 came from just two customers. Investors should proceed with caution due to these risks, including potential slowdowns in AI spending and rising costs.
US futures steady after AI selloff impacts IBM, Amex
US stock futures stabilized on February 25, 2026, after a significant selloff the previous day driven by concerns over artificial intelligence. Major indexes like the Dow, S&P 500, and Nasdaq fell on Monday. IBM's stock plunged 13.1% after Anthropic released new coding tools, and American Express dropped 7.2% due to research on AI-driven job losses. Other companies like CrowdStrike, Oracle, Visa, and Mastercard also saw declines. Investors are now awaiting key earnings reports from companies including Nvidia and Salesforce.
IBM struggles in AI race, stock falls
International Business Machines (IBM) is facing challenges in the artificial intelligence boom, with its stock lagging behind competitors like Microsoft and Alphabet. Despite significant investments in AI research, IBM's efforts have not yet led to major market gains. The company's focus on enterprise solutions, which adopt new technologies more slowly, and strong competition contribute to its underperformance. IBM remains committed to its AI strategy, planning further investments and partnerships to catch up in the AI revolution.
Nvidia's AI chips drive massive revenue growth
Nvidia is a leading company in artificial intelligence, with its GPUs powering AI development for various applications. The company reported a 262% increase in revenue for the first quarter of fiscal year 2025, reaching $26 billion. Its data center segment, which includes AI chips, saw a 427% revenue surge, and earnings per share grew by 461% to $6.12. Analysts are optimistic about Nvidia's continued growth due to the increasing demand for AI chips as more companies adopt AI technologies.
Atrium Mortgage Investment Corp AI technical data and ratings
Technical data and AI-generated trading signals are available for Atrium Mortgage Investment Corporation (AI:CA) as of February 24, 2026. Long-term trading plans suggest buying near 11.84 with a target of 12.17 and a stop loss at 11.78, or shorting near 12.17 with a target of 11.84 and a stop loss at 12.23. The AI ratings for AI:CA show a 'Neutral' rating for the near term, and 'Strong' ratings for the mid and long term. Some triggers may have already occurred.
ABB powers AI data centers but faces valuation risks
ABB is positioned to benefit from the growing demand for AI infrastructure by providing electrification and automation solutions for data centers. The company has focused on its core segments after divesting other businesses, leading to improved profitability and steady revenue growth. ABB plans to increase R&D investment and pursue strategic acquisitions to maintain market leadership. However, the stock's significant rise has created a high valuation, leaving little room for error if growth expectations are not met.
Amazon invests $12B in Louisiana data centers for AI growth
Amazon plans to invest $12 billion in Louisiana to build new data center campuses, strengthening its position in the AI market. The company is partnering with STACK Infrastructure and working with local utility SWEPCO. Amazon is also investing up to $400 million in public water infrastructure and has committed to new solar energy projects in Louisiana. These investments come as data centers face scrutiny over their impact on local electricity and water resources. Amazon expects its capital spending to reach $200 billion in 2026 to meet AI demand.
Sources
- Bitcoin price news: BTC tumbles back to $64,000 as IBM becomes latest AI target
- IBM stock plunges after AI tool targets its legacy systems
- IBM posts steepest daily drop since 2000 after Anthropic says AI can modernize COBOL
- Why Shares of Thomson Reuters Are Surging Today (Hint: It Has to do With Artificial Intelligence)
- Why Shares of Thomson Reuters Are Surging Today (Hint: It Has to do With Artificial Intelligence)
- Is CoreWeave Stock a Buy Now?
- US Futures Stabilize After AI-Driven Selloff
- AI scare trade casualty: IBM
- This AI Stock Is a Money-Making Machine
- (AI) Technical Data
- ABB: Powering AI's Buildout, But With Little Room For Error
- Amazon (AMZN) Strengthens AI Growth Story with $12B Investment in Louisiana Data Centers
Comments
Please log in to post a comment.