Stock Market Today (LIVE): Kyndryl Plunges on Job Cuts, Outlook; AMD Steps Out of Nvidia’s Shadow

📌 Top story — scroll down for more updates

Software Giant Kyndryl Cuts Workforce

10:15 am — KD -10.2%

Kyndryl (KD 10.07%) shares plummeted over 12% Wednesday after the IBM (IBM 0.56%) spinoff announced a major workforce reduction and issued fiscal 2027 profit guidance that trailed Wall Street estimates. While quarterly revenue of $3.77 billion narrowly beat expectations, adjusted profit of 18 cents per share missed the 45-cent mark by a mile. The company is aggressively restructuring low-margin contracts inherited during the 2021 split, aiming to slash up to $500 million in annual costs by 2028. This pivot follows recent management turnover and an internal accounting review, adding a layer of risk for investors despite resilient demand for IT integration.

  • Cleaning the Slate: The restructuring involves $200 million in severance charges as Kyndryl attempts to transition away from the “no-margin” legacy debt left behind by its former parent company.
  • Essential Service Moat: Despite the bottom-line misses, the enterprise remains a vital partner for corporations navigating trade-driven uncertainty, as businesses prioritize spending on the day-to-day IT infrastructure required to run artificial intelligence.

Opening Bell

9:35 am — AMD +19.4%, INTC +3.4%

Markets are rallying this Wednesday as the Dow climbed over 500 points on optimism surrounding a potential end to the U.S.-Iran conflict. While President Trump cautioned that a deal is not guaranteed, the “Project Freedom” pause sent West Texas Intermediatefutures down 5% to $96. Tech is leading the charge, sparked by Advanced Micro Devices (AMD +14.87%), which soared 16% after beating estimates and issuing a stellar second-quarter forecast. This earnings strength is lifting the broader VanEck Semiconductor ETF (SMH +3.88%) and helping Intel (INTC +2.78%) extend its recent record-breaking run.

Top of the Morning

9:20 am — AMD +14.3% in pre-market trading

Emily Flippen, CFA

By Emily Flippen, CFA
Team Rule Breakers

AMD‘s (AMD +14.87%) first quarter earnings report just blew expectations out of the water, and in my opinion, justifies not just the strong nearly 20% pre-market pop but also warrants a change in the way investors think about this chip business. Investors have always been cautious with AMD since to many it felt like the business was playing catch-up to Nvidia (NVDA +4.32%), capturing the remaining tailwinds of a GPU tide that is being driven by its larger competitor. But this quarter showed that AMD’s lead in CPUs can be just as beneficial to its growth trajectory as its improving competitive position in GPUs.

Advanced Micro Devices Stock Quote

Today’s Change

(14.87%) $52.81

Current Price

$408.07

Today’s Breakfast News

9:15 am — AMD +14.7% in pre-market trading

Advanced Micro Devices (AMD +14.87%) jumped 17% in pre-market trading after beating expectations in the first quarter of fiscal 2026 – on a day when chip stocks pushed the S&P 500 and Nasdaq to new record highs. The chipmaker – beating the S&P 500 by 55% since its 2024 Stock Advisor recommendation by Team Rule Breakers – saw revenue surge 38% in the quarter year over year (YOY), with non-GAAP earnings per share (EPS) up 43%.

  • “Accelerating demand for AI infrastructure across our portfolio”: CEO Lisa Su spoke of the driving force behind AMD’s stunning start to the year, describing the quarter as “a clear inflection in our growth trajectory and a structural shift in our business.” AMD’s partnership with Meta (META +1.64%) should see the deployment of 6 gigawatts of Instinct graphics processing units (GPUs).
  • Guidance for Q2 revenue to reach $11.2 billion: Management predicts a 9% revenue rise between this quarter and the next, which would mean a YOY increase of 46% in Q2.

Image shows chart of Advanced Micro Devices vs. the S&P 500 over the past 3 years

This article was created using Large Language Models (LLMs) based on The Motley Fool’s insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. Emily Flippen, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, International Business Machines, Kyndryl, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.

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