The Bull Case For Kyndryl Holdings (KD) Could Change Following Expanded VMware-AI Alliance With Broadcom
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The Bull Case For Kyndryl Holdings (KD) Could Change Following Expanded VMware-AI Alliance With Broadcom Sasha Jovanovic Thu, September 3, 2026 at 11:09 PM EDT 4 min read KD AVGO In August 2026, Kyndryl Holdings announced an expanded alliance with Broadcom to provide end-to-end consulting and managed services for VMware Cloud Foundation, targeting AI-ready, secure private and hybrid cloud environments with strengthened cyber recovery capabilities. A distinctive aspect of the collaboration is the planned upskilling of several thousand Kyndryl consultants to implement agentic workflows and policy-driven AI governance across VMware estates, aiming to reduce operational complexity while keeping automation within strict guardrails. We'll now examine how Kyndryl's expanded VMware Cloud Foundation services and AI governance focus may influence its existing investment narrative. AI is about to change healthcare. These 37 stocks are working on everything from early diagnostics to drug discovery . The best part - they are all under $10b in market cap - there's still time to get in early. To own Kyndryl, you need to believe it can gradually replace legacy, low margin contracts with higher value consulting, cloud and AI governed services while stabilizing revenue and lifting margins. The expanded VMware Cloud Foundation alliance with Broadcom supports that thesis by deepening Kyndryl's role in mission critical, AI ready private and hybrid clouds, but it does not remove near term risks around revenue lumpiness, legacy contract run off and execution in complex renewals. Among recent developments, the August 2026 launch of Kyndryl's Agentic Modernization services as software on Kyndryl Bridge looks most relevant. That offering, which packages predefined agentic workflows with governance and AIOps, ties directly into the new Broadcom collaboration by giving Kyndryl a common tooling layer to manage VMware and multi cloud estates. If customers adopt it at scale, it could support the company's push toward higher margin, software enhanced services while it works through legacy contract headwinds. Yet behind the Broadcom news, investors should also be aware that revenue is still pressured by legacy contracts and that even small execution missteps could... Read the full narrative on Kyndryl Holdings (it's free!) Kyndryl Holdings' narrative projects $15.2 billion revenue and $472.5 million earnings by 2029. This requires revenue to remain fairly flat each year and a $274.5 million earnings increase from $198.0 million today. Uncover how Kyndryl Holdings' forecasts yield a $14.10 fair value , a 6% upside to its current price. Some of the most optimistic analysts were already assuming earnings could climb toward about US$560.1 million on flat revenue, so if you worry that any cyber incident or service disruption on Kyndryl Bridge could hurt renewals and pricing, it is worth weighing how this VMware focused AI push might either support that upbeat view or force those expectations lower. Explore 5 other fair value estimates on Kyndryl Holdings - why the stock might be worth as much as 48% more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Kyndryl Holdings research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision. Our free Kyndryl Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Kyndryl Holdings' overall financial health at a glance. Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped: Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 30 best rare earth metal stocks of the very few that mine this essential strategic resource. The future of work is here. Discover the 36 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. Uncover the next big thing with 22 elite penny stocks that balance risk and reward. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include KD . Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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