Anthropic | IBM is the latest AI casualty. Shares are tanking 11% on Anthropic programming language threat

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IBM is the latest AI casualty. Shares are tanking 11% on Anthropic programming language threat

Published Mon, Feb 23 20262:30 PM ESTUpdated An Hour Ago

International Business Machines stock is getting slammed, becoming the latest victim of rapidly developing AI technology, after Anthropic’s Claude announced COBOL capabilities.

Shares of IBM fell 11% in Monday afternoon trading after Anthropic outlined a new use case for its Claude Code product: automating the exploration and analysis work that drives most of the complexity in COBOL modernization.

COBOL, short for Common Business-Oriented Language, is a decades-old programming language used widely in business data processing, which is a core business area for IBM. COBOL continues to power systems responsible for large volumes of transactions, including payment processing and retail transaction systems, making it a prime target for cost-efficient AI disruption.

In a Monday blog post, Anthropic wrote that COBOL handles an estimated 95% of ATM transactions in the U.S., for example.

“Hundreds of billions of lines of COBOL run in production every day, powering critical systems in finance, airlines, and government. Despite that, the number of people who understand it shrinks every year,” the Anthropic blog post reads. “AI excels at streamlining the tasks that once made COBOL modernization cost-prohibitive.”

It then explained that Claude Code can help modernize COBOL codebases by mapping dependencies across thousands of lines of code, documenting workflows and identifying risks that “would take human analysts months to surface.”

“Legacy code modernization stalled for years because understanding legacy code cost more than rewriting it. AI flips that equation,” the blog post says.

IBM is the latest stock to fall on AI fears, which have rattled investors in recent weeks and contributed to a volatile “sell first and ask questions later” trading environment. On Friday, a slew of cybersecurity companies tumbled after Anthropic unveiled a new capability it built into Claude Code, called Claude Code Security, that it said is capable of scanning codebases for security vulnerabilities and finding software vulnerabilities for humans to review. The sector remained under pressure in Monday’s session.

Monday’s sell-off brought IBM shares down nearly 22% year to date.