RXT Stock Surges To 4-Year Highs — Wall Street Highlights Multi-Industry Growth Potential After AMD Deal

RBC Capital said the partnership with AMD could help Rackspace gain market share across healthcare, financial services, energy, and government sectors.

• Analyst Daniel Perlin said the AMD deal supports Rackspace’s strategy of becoming a leading enterprise AI provider for highly regulated industries.
• He raised the stock’s price target to $4 from $2.50 while maintaining a ‘Sector Perform’ rating.
• Rackspace has also reduced its workforce by roughly 10% to lower costs.

Shares of Rackspace Technology (RXT) soared more than 35% on Wednesday, extending their rally for a third straight session after a bullish Wall Street note highlighted the company’s partnership with Advanced Micro Devices (AMD) as a potential catalyst for gaining market share across several key industries.

RXT shares are currently trading at more than four-year highs.

AMD Deal Opens Up Multiple Sectors For RXT

On Wednesday, RBC Capital raised the stock’s price target to $4 from $2.50 while maintaining a ‘Sector Perform’ rating, according to The Fly. At the time of writing, the stock has already sailed past the estimated figure.

Analyst Daniel Perlin said the AMD deal supports Rackspace’s strategy of becoming a leading enterprise AI provider for highly regulated industries. He added that the company is leveraging its existing infrastructure and power capacity while expanding from bare-metal services into enterprise AI cloud offerings.

Perlin noted that the partnership could help Rackspace gain market share across healthcare, financial services, energy, and government sectors.

What Is The AMD Deal About?

On Tuesday, Rackspace and AMD signed a multi-year agreement to deploy AMD GPUs and EPYC processors across its global data centers through 2028.

Alongside the partnership, Rackspace said that it reduced its workforce by roughly 10% to lower costs and shift resources toward its enterprise AI strategy. The company expects to record up to $19 million in one-time restructuring charges and generate up to $85 million in annual savings.

Rackspace said part of those savings will be reinvested in engineering talent and AI solutions delivery.

What Is Retail’s Take On RXT?

Retail sentiment surrounding RXT on Stocktwits turned ‘extremely bullish’ from ‘bullish’ a day earlier, accompanied by ‘extremely high’ message volumes.

One user attributed Wednesday’s rally to institutional buying.

View this Stocktwits post

The stock has soared more than 730% so far this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<