Key Highlights

  • Premarket shares jumped 26.22% to $7.47 after Rackspace closed nearly flat at $5.92 on June 15.
  • AMD compute capacity will reach an initial 30 megawatts across Rackspace data centres through 2028.
  • Deployment will begin in late 2026 and include AMD Instinct GPUs and EPYC processors.
  • First-quarter revenue rose 2% year over year to $678 million, led by 7% public-cloud growth.

Rackspace Technology, Inc. (NASDAQ:RXT) shares soared before the June 16 opening bell after the cloud-services company signed a definitive agreement with Advanced Micro Devices, Inc. (NASDAQ:AMD) for a phased deployment of artificial-intelligence computing infrastructure.

The stock traded at $7.47 in the latest premarket update, up $1.55, or 26.22%, from Monday’s close of $5.92. Rackspace shares were nearly unchanged during the previous regular session after trading between $5.31 and $5.99 on volume of about 14.43 million shares.

The agreement covers an initial 30-megawatt footprint of AMD-based computing capacity across Rackspace’s global data-centre network. Deployment is scheduled to begin in late 2026 and continue through 2028.

The definitive contract advances the memorandum of understanding announced on May 7. It establishes AMD as the strategic technology partner at the silicon layer of Rackspace’s governed enterprise AI infrastructure.

The planned architecture will incorporate AMD Instinct MI355X and MI350P graphics processors, future accelerator products and AMD EPYC central processing units. Rackspace plans to integrate the hardware into its Enterprise AI Cloud platform for regulated and sovereign customers.

The infrastructure is intended to support workloads including clinical AI, large-scale inference and other applications requiring data governance, security and operational accountability. Healthcare providers have shown early interest in accelerated computing capacity for clinical AI and inference at scale.

Both companies expect to dedicate sales and marketing personnel to identify customers and jointly pursue commercial opportunities across regulated industries.

The agreement also supports four services announced under the earlier memorandum: Enterprise AI Cloud, Enterprise Inference Engine, Inference as a Service and Bare Metal AMD Instinct.

Individual deployments remain subject to separate authorisations and additional commercial agreements. Certain pricing and financial terms also remain subject to further negotiation, while any third-party financing will depend on availability and acceptable terms.

Rackspace reported first-quarter revenue of $678 million, up 2% from the prior-year period. Public Cloud revenue increased 7% to $443 million, while Private Cloud revenue declined 6% to $235 million.

The company generated $5 million in operating cash flow during the quarter. Its June 15 closing price implied a market capitalisation of approximately $1.47 billion.

Rackspace shares have traded between $0.39 and $7.65 over the past 52 weeks. The premarket surge placed the stock close to the upper end of that range.