IBM Plunged After Issuing a Warning on the Software Sector. Time to Buy?

IBM stock plummeted 25% after CEO Arvind Krishna warned that high hardware capital expenditures are causing companies to shift budgets away from software spending. Q2 revenue growth slowed to just 1% year-over-year, with the software segment's growth declining from 11% to 5%. However, the article argues the sell-off presents a buying opportunity, citing IBM's attractive P/E ratio of 19, strong historical performance under Krishna's leadership, Red Hat's solid 11% growth, and significant quantum computing investments.