TLDR
- IBM shares tumbled 22% after Q2 revenue and earnings missed expectations
- Apple was downgraded to Underweight by KeyBanc, citing slowing device sales
- Tower Semiconductor surged 18% on a $3B Japan expansion plan
- JPMorgan slipped despite beating Q2 estimates; Bank of America and Wells Fargo rose
- Chip stocks AMD, Intel, and Micron bounced back after Monday’s selloff
Tuesday brought a busy morning for investors. A wave of bank earnings landed just before the June consumer price index inflation report, giving traders a lot to work through before the opening bell.
JPMorgan slipped 1.4% premarket even though its second-quarter earnings and revenue beat analyst expectations. Bank of America gained 1.9% and Wells Fargo climbed 1.4% after both also beat estimates. Citigroup and Goldman Sachs were both set to report their own Q2 results later in the day.
IBM was the biggest loser of the morning. Shares fell 22% after the company posted preliminary Q2 results that missed on both revenue and earnings. Revenue came in at $17.2 billion, with operating earnings per share of $2.93, both below what analysts had expected.
International Business Machines Corporation, IBM
CEO Arvind Krishna called the quarter “disappointing.” He pointed to delayed large deal closures, weaker demand for its mainframe product, and clients shifting spending toward servers and storage. Infrastructure revenue fell 7%, while its consulting business was flat.
Despite the miss, IBM noted that its Red Hat unit posted 11% revenue growth. The company said it remains confident in its long-term strategy ahead of a full earnings report later this month.
Tower Semiconductor Surges on Japan Expansion
Tower Semiconductor was the standout gainer, jumping 18%. The chipmaker announced a roughly $3 billion investment to expand semiconductor manufacturing in Japan, backed by about $1 billion in government grants.
Tower raised its 2028 targets, projecting $3.6 billion in revenue and $1.2 billion in net profit. The expansion is aimed at meeting demand from AI and data center customers.
Other chip stocks also moved higher. Advanced Micro Devices rose 2%, Intel gained 2.5%, Micron added 3.4%, and Nvidia edged up 0.4%. The sector had sold off on Monday, and Tuesday brought a partial recovery.
Apple dropped 1.3% after KeyBanc analyst Brandon Nispel downgraded the stock from Sector Weight to Underweight, setting a price target of $250. The firm cited slowing iPhone, MacBook, and iPad sales, warning that reduced carrier subsidies could slow upgrade cycles. KeyBanc also said Apple’s forward valuation is hard to justify at current levels.
Ericsson fell 9% despite beating profit expectations. Revenue dropped 6% year over year to SEK 52.7 billion, missing estimates due to lower patent-licensing income. The company also announced CEO Börje Ekholm will retire on September 30, 2026, with Per Narvinger stepping in as his replacement.
Penguin Solutions slid 5% after announcing plans to offer $650 million in convertible notes. MBX Biosciences fell 6% following a leadership change, with Steve Hoerter named as the new CEO.
BP rose 1.5% after saying it expects stronger oil trading revenue as Middle East tensions push crude prices around.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Be the first to comment