** IBM's IBM.N shares rise 5.4% to $277 premarket

** Co unveils tech for chip smaller than 1 nanometer

** 0.7-nm chip packs nearly 100 bln transistors onto fingernail-sized surface

** Tech has new design called "nanostack" that stacks transistors on top of each other in three dimensions, fitting more into less space

** Co says production could begin within 5 years

** Up to last close, stock fell 11.2% so far this year