Rackspace Stock Surge Following AMD Partnership
Shares of Rackspace Technology (NASDAQ: RXT) surged over 103% on Thursday morning, reaching a peak gain of 81.5% shortly after, following the announcement of its Q1 2026 earnings. The cloud computing company reported revenues of $678 million, slightly beating Wall Street’s expectations of $675 million, but posted an adjusted net loss of $0.06 per share, which was higher than the anticipated loss of $0.03 per share.
In conjunction with its earnings report, Rackspace announced a deal with Advanced Micro Devices (NASDAQ: AMD) to establish secure AI infrastructure for regulated industries. This new category is projected to drive future growth for the company, although management’s full-year guidance remained unchanged. Revenue from this partnership is not expected to materialize until 2027, prompting today’s stock rally as a speculative bet on long-term potential.
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