By Mackenzie Tatananni
Shares of Rackspace Technology spiked Tuesday after the cloud computing company finalized a deal to use chips from Advanced Micro Devices in its data centers.
The agreement locks in a memorandum of understanding from May, establishing AMD as the main hardware provider for Rackspace's AI cloud. The companies will begin rolling out 30 megawatts of computing capacity later this year, with full deployment expected by 2028.
Rackspace shares rose 21% to $7.15 in Tuesday's premarket session. AMD was up 0.9%, outpacing tech-heavy Nasdaq futures, which rose 0.3%.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
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June 16, 2026 07:32 ET (11:32 GMT)
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