IBM: What Its Earnings Misses Say About the State of AI Right Now

IBM released preliminary Q2 results showing revenue of $17.2B (up 1% YoY) and adjusted EPS of $2.93, both below expectations. The company revealed that AI spenders are shifting budgets away from software toward servers, storage, and memory due to supply constraints and rising prices. IBM's stock plunged 25% in a single day—its worst day in company history. Meanwhile, memory and storage companies like SK Hynix, Micron, and SanDisk are thriving as demand for data center infrastructure surges.