Rackspace Technology (RXT) stock jumped over 80% in premarket trading on Thursday after the company revealed a Memorandum of Understanding (MOU) with Advanced Micro Devices (AMD). At press time, RXT was up 62% to $3.68.
Rackspace Technology, Inc., RXT
The move comes after RXT fell 7.35% the previous session. Year-to-date, the stock is now up 134.02%, and up 57.64% over the past 12 months.
Trading volume reflected the excitement. Around 44 million shares changed hands on Thursday, compared to a three-month average daily volume of roughly 1.02 million. That’s more than 40 times normal activity.
The MOU sets out a plan for a multiyear partnership to build what the companies are calling an “Enterprise AI Cloud” — a managed infrastructure platform built specifically for regulated industries and sovereign workloads where compliance and governance are mandatory.
The core idea here is a shift from the current norm, where enterprises rent GPUs and manage a lot of the operational burden themselves.
Under the new model, AMD GPUs and CPUs would be integrated into a fully managed and governed stack — one that Rackspace owns end-to-end.
The platform is designed around four integrated layers: bare-metal compute, developer-focused inference tools, managed inference runtime services with defined SLAs, and a governed Enterprise AI Cloud platform.
Gajen Kandiah, CEO of Rackspace Technology, put it plainly: “Governing AI infrastructure in regulated environments with defined accountability is not something you bolt on after the fact. It must be built in from the start.”
AMD’s Dan McNamara, Senior Vice President and General Manager of Compute & Enterprise AI, added that the collaboration is about getting AMD’s AI compute into “managed, private, and governed environments so enterprises can deploy AI with the performance and flexibility their workloads demand.”
The goal, as both companies describe it, is to give enterprises one accountable operator across every layer of the stack — calibrated to whatever sovereignty, performance, and compliance requirements a given workload needs.
Despite the dramatic price move, Wall Street isn’t rushing to upgrade the stock. The current consensus rating on RXT is Hold, based on three analyst ratings over the past three months.
The average price target sits at $2.17 — which, even after Thursday’s spike, implies a potential downside of around 4.55% from current levels.
The MOU is not a binding contract, and no financial terms of the partnership have been disclosed. The companies have not said when commercial availability of the platform is expected.
RXT stock was trading at $3.68, up 62% on the day, at the time of writing.
The post Rackspace (RXT) Stock Jumps Over 80% on AMD Enterprise AI Cloud Deal appeared first on CoinCentral.
