Rackspace Technology's stock price soared 9.97% during intraday trading on Thursday, marking a significant upward movement for the cloud services provider.

The surge follows the company's recent first-quarter earnings report, which showed revenue of $678.1 million, surpassing market expectations of $660.8 million. Concurrently, Rackspace announced a strategic partnership with AMD in the artificial intelligence domain, a move that has bolstered investor confidence in the company's growth trajectory and technological positioning.

Market activity indicates the stock is experiencing heightened volatility as investors reassess the company's prospects, weighing its top-line strength and promising AI initiatives against recent profitability challenges, including an adjusted EPS that missed expectations.