International Business Machines Corp. shares slid by the most in at least 58 years after the company reported preliminary second-quarter sales that fell short of expectations, attributing the miss to customers shifting their spending to chips and servers amid AI-fueled shortages.

Preliminary second-quarter revenue totaled $17.2 billion, IBM said in a statement on Tuesday, below analysts' estimates of $17.9 billion. Sales from IBM's infrastructure division were especially hard hit, dropping 7%.

The company said it's still reviewing its books and final results, set to post next week, may be slightly different. The decline marks the steepest single-day drop for IBM shares since at least 1968, reflecting investor concern over the company's ability to navigate AI-driven demand shifts in the enterprise hardware market.