🏭 IBM Q2 'Double Beat' and the Link to 0.7nm Technology - 2026.07.23

Hi, it's your Dotori Senior. Let's start with the news that IBM achieved a 'double beat' in its Q2 earnings, surpassing expectations for both revenue and profitability ^[1].

Q2 Proves Fundamental Strength 🏭

Structurally, these results are significant because the company's measures to accelerate profit growth are finally showing up in the actual numbers ^[1]. Analysts were busy adjusting their outlooks around the earnings call as well ^[4]. Institutional investors are also keeping a close eye on this trend; Danica Pension, a Danish pension insurer, made a new investment in IBM ^[2], and some analysts have even named IBM as one of their top technology picks ^[3].

The Gears of Hardware and AI ⚙️

Taking a closer look, the progress in hardware technology is also noteworthy. To break through the limits of Moore's Law, they introduced 0.7-nanometer class '7A Nanostack' technology ^[6]. It is an innovative method that goes beyond planar or GAA by stacking NMOS and PMOS vertically ^[6]. They are also consistently emphasizing optimization technologies for enterprise AI workflows, such as fine-tuning, RAG, and LoRA ^[7]. This connection is key. The fundamentals of software and hardware are moving in tandem.

Checking Value Chain Beneficiaries 🔗

Let's look at the big picture. In the current phase where AI and next-gen infrastructure are interlocking, we can categorize the differential benefits across the value chain as follows:

• 1st Priority: Next-gen semiconductor design and licensing ecosystem, such as 7A Nanostack ^[6]
• 2nd Priority: Enterprise AI model optimization and consulting sectors, such as RAG or LoRA ^[7]
• 3rd Priority: Hybrid cloud infrastructure that supports these

Remaining Variables 📚

However, we must also note the hurdles. A disclosure revealed that a law firm is currently investigating IBM and collecting relevant cases ^[5]. This could pose a potential legal risk. The stock price also took a breather, closing down 2.01% at $206 as of the 22nd. Dotori believes these legal variables and the actual monetization speed of AI infrastructure will be the true watershed for valuation in the second half. Will 0.7nm technology and AI solutions fully meet market expectations?

📰 Reference News (5)

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Analysts’ Top Technology Picks: International Business Machines (IBM), ServiceNow (NOW) - The Globe and Mail

The Globe and Mail · 2026.07.22

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📺 Reference Videos (2)

6

YouTube

A CPU Made of Atoms: IBM's Breakthrough 0.7nm Transistors

▶TechTechPotato·2026.07.21

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YouTube

Is Fine-Tuning Still Needed? LLMs, RAG, & LoRA

▶IBM Technology·2026.07.21