The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

Rackspace Technology (RXT) stock is extending gains on Tuesday after the cloud provider announced a sizable hardware partnership with Advanced Micro Devices (AMD).

This definitive agreement is aimed at rolling out a phased, 30-megawatt (MW) computing footprint across RXT’s global data centers over the next two years.

Dear Rocket Lab Stock Fans, Mark Your Calendars for June 22

Dear SpaceX Stock Fans, Mark Your Calendars for June 16

Stay Away from Super Micro Computer Stock. It’s Hostage to Its Own Mistakes.

Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else.

Rackspace shares have been a lucrative investment in 2026, currently trading at more than 6x their price at the start of this year.

Teaming up with AMD bolsters RXT shares’ position within lucrative, highly regulated sectors.

By utilizing AMD’s customized architecture, Rackspace is launching a new category of “governed enterprise AI infrastructure” purpose-built for sovereign and highly sensitive environments.

This infrastructure is tailored for industries, including health care, that demand rigid data security and clinical AI compliance.

Because highly regulated sectors often pay premium rates for comprehensive security and single-operator accountability, this partnership enables RXT to bypass low-margin public cloud battles and capture highly profitable, sticky enterprise workloads.

Note that Rackspace’s relative strength index (RSI), even after today’s rally, sits in the early 60s, indicating significant further room to the upside before the stock hits overbought territory.

Rackspace shares rallied today also because of the sheer processing power and flexibility this deal injects into the company’s technological ecosystem.

The multi-year rollout builds a unified Enterprise AI Cloud incorporating AMD’s advanced Instinct GPUs alongside its EPYC CPUs.

This holistic, single-operator environment lets RXT route specific enterprise workloads seamlessly to the most efficient compute layer, whether optimizing for intensive artificial intelligence training or rapid inference.

Scaling out a massive 30 MW footprint ensures Rackspace Technology can meet the surging global demand for artificial intelligence processing without bottlenecking its infrastructure.

Overall, the AMD deal positions RXT as one of the few non‑hyperscalers capable of delivering sovereign‑grade AI infrastructure, a category seeing huge demand from governments and regulated enterprises worldwide.

By pairing Instinct GPUs with EPYC CPUs inside a unified control plane, Rackspace Technology effectively becomes a full‑stack AI infrastructure provider rather than a commodity cloud reseller.

That said, Wall Street still rates RXT stock a “Hold," with the mean price objective of about $4.33, indicating potential downside of more than 33% from current levels.

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com