Rackspace Technology, Nebius Group, and Arm Holdings surged to 52-week highs amid growing Wall Street optimism and growth plans.
- RXT shares surged to $8.60 on Wednesday following a bullish note from RBC Capital that cited an agreement with AMD as a key catalyst for growth.
- NBIS jumped to a high of $297.93 as investors continued to reward the company's aggressive expansion in AI cloud infrastructure.
- ARM shares climbed to a 52-week high of $444.80 after Bernstein raised its price target on the company, citing its growing role in powering agentic AI workloads.
Shares of Rackspace Technology Inc. (RXT), Nebius Group (NBIS), and Arm Holdings (ARM) surged to annual highs on Wednesday as growing Wall Street optimism and growth plans stoked investor optimism in the companies.
RXT shares surged, closing up more than 21% on Wednesday after a bullish note from RBC Capital drove interest in the company. Meanwhile, NBIS and ARM closed up nearly 6% higher on increasing AI-related demand.
Rackspace Technology Jumps On Enterprise AI Bet
Shares of multicloud solutions company surged to a 52-week high of $8.60 on Wednesday, extending a three-day rally and reaching their highest level in over four years after investors cheered the company's expanded AI ambitions through a new partnership with Advanced Micro Devices Inc. (AMD).
The move was fueled by a bullish note from RBC Capital, which raised its price target on the stock to $4 from $2.50 while maintaining a ‘Sector Perform’ rating, according to The Fly, citing the AMD agreement as a key catalyst for growth. Analyst Daniel Perlin said the partnership with AMD advances Rackspace’s goal of becoming a leading enterprise AI platform for regulated sectors.
The multi-year deal outlines that Rackspace will deploy AMD GPUs and EPYC processors across its global data centers through 2028, strengthening its push into enterprise AI services.
Alongside the deal, investors also cheered the company’s cost-cutting measures, including a 10% workforce reduction expected to generate up to $85 million in annual savings. Rackspace plans to reinvest part of those savings into engineering talent and AI solution development, reinforcing its long-term AI strategy.
RXT stock has surged 676% so far this year, with retail sentiment in the ‘extremely bullish’ territory over the past 24 hours.
Nebius Gains On Data Center Expansion Optimism
The AI cloud and infrastructure company’s shares jumped to a 52-week high of $297.93 on Wednesday, as investors continued to reward its aggressive expansion in AI cloud infrastructure. Its addition to the Nasdaq 100 Index later this month stoked further optimism.
The Amsterdam-based company has been rapidly increasing its data center capacity across Europe, recently committing £1.7 billion ($2.3 billion) to develop three data centers in the U.K. The announcement follows plans for a 310-megawatt facility in Finland, valued at more than $10 billion, and a 240-megawatt data center in France.
The expansion is aimed at meeting rising demand for AI cloud services. After winning a major contract from Microsoft last year, Nebius secured a $24 billion agreement with Meta Platforms in March 2026, strengthening its position as a potential AI hyperscaler. The company also completed its acquisition of Eigen AI and signed a 10-year, 22-megawatt AI infrastructure agreement with Kao Data.
NBIS shares have surged 212% year-to-date amid booming AI infrastructure demand, with sentiment climbing from ‘neutral’ to ‘bullish’ territory over 24 hours.
Arm Rises On Growing AI CPU Demand
Shares of Arm Holdings climbed to a 52-week high of $444.80 after Bernstein raised its price target to $500 from $300, citing the company's growing role in powering agentic AI workloads.
The analyst said that Arm’s energy-efficient CPU architecture is well-positioned to benefit from rising demand for AI agents, which require continuous processing and inference capabilities. Bernstein also said that Arm is evolving beyond its traditional intellectual property licensing model into a CPU supplier, significantly expanding its addressable market.
Reflecting that optimism, the firm increased its 2030 revenue forecast for Arm to $22 billion, up from an earlier estimate of $15 billion, and raised its long-term earnings outlook.
ARM shares have soared more than 265% so far in 2026, although retail sentiment has stayed in the ‘bearish’ territory over the past month.
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