IBM Stock Suffered an Ugly Earnings Sell-Off. DELL Stock Could Be a Big Winner.

The artificial intelligence (AI) boom is reshaping corporate technology spending in unexpected ways. On Tuesday, July 14, International Business Machines Corporation (IBM) announced its preliminary Q2 FY2026 adjusted earnings of $2.93 per share on $17.2 billion in revenue, missing Wall Street estimates and sending its shares sharply lower.

The company revealed that the AI-driven memory shortage prompted enterprise customers to redirect a larger share of their technology budgets toward infrastructure, while higher cybersecurity spending weighed on its own results. These changing priorities contributed to IBM’s weaker-than-expected performance.