IBM

IBM

Market cap $225B

Shares of pure-play companies IonQ, Rigetti, and D-Wave are down more than 30% so far in 2026. Large-scale use may be many years away, creating a survival risk for these cash-burning companies.

International Business Machines is insulated from AI disruption due to its mission-critical, deeply integrated enterprise software and hardware solutions. IBM's mainframes and core systems remain indispensable for regulated industries, with decades-long client relationships and zero-fault tolerance requirements. The recent software sector selloff is overdone for IBM; its fundamentals remain strong, with upgraded growth forecasts and record FCF margins.

BigBear.ai provides AI-powered security and defense solutions for the U.S. military and intelligence services. The company is struggling to find a wider market for its products.

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Software stocks have plunged this year on fears of AI disruption. Block seemed to confirm those fears by announcing mass layoffs as it pivoted AI.

Anthropic's AI-powered computing-coding agent Claude appears easily capable of competing with one of IBM's core businesses. Worries of this threat sent IBM stock careening on Monday.

Nvidia (NVDA) delivered strong earnings and guidance, but high expectations triggered a 'sell the news' reaction and ongoing valuation concerns. AI infrastructure demand remains robust, yet NVDA faces supply challenges and heightened market sensitivity to any potential shortfall.

The ProShares S&P 500 Dividend Aristocrat ETF (NOBL) is up 9.39% YTD in 2026, decisively outperforming SPY's 1.08%. Dividend Aristocrats are regaining momentum after a weak 2025, with 55 outpacing SPY and 39 posting double-digit gains this year already. Dividend growth is lagging, with 2026's average increase currently at 3.22%, below last year's trend and potentially signaling headwinds.

IBM (IBM) concluded the recent trading session at $242.01, signifying a +1.88% move from its prior day's close.

The sudden sell-offs for both IBM stock and DoorDash have a common culprit.