IBM’s stock bounces. Analysts say the company won’t be so easily dismantled by AI.

MarketWatch

by Emily Bary

February 24, 2026

AI-Generated Deep Dive Summary

IBM’s stock experienced a significant rebound following its sharpest daily decline in over 25 years, with analysts highlighting the resilience of its mainframe business amid concerns about AI competition. The sharp drop in IBM shares was triggered by a blog post from Anthropic, which introduced a new feature for its Claude Code AI model aimed at automating the modernization of COBOL, a programming language heavily used in data processing and legacy systems. Investors grew concerned that this innovation could undermine IBM’s core infrastructure and consulting businesses, which rely on mainframe technologies to handle critical enterprise workloads. Despite these fears, analysts quickly rallied behind IBM, emphasizing the enduring importance of its mainframe business. These systems are integral to many industries, particularly in banking, government, and large enterprises, where they manage high-volume transactions and mission-critical applications. Analysts pointed out that while AI tools like Claude Code could streamline certain tasks, they are unlikely to replace the reliability, scalability, and security of IBM’s mainframes in the near term. The broader implications for investors lie in understanding the balance between legacy systems and emerging technologies. While AI represents a growing threat to traditional IT infrastructure, IBM’s ability to adapt its offerings—such as cloud services and hybrid IT solutions—to meet evolving demands has positioned it as a resilient player in the tech industry. This adaptability, combined with the long-term stability of its mainframe business, suggests that IBM is not easily dismantled by AI advancements.

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Originally published on MarketWatch on 2/24/2026