On June 17, Rackspace Technology rose 11.76% in regular trading, trading at $7.243/share, with turnover of $67.97 million. The stock continues its upward momentum following the signing of a definitive agreement with AMD.

AMD and Rackspace Technology formally signed a definitive agreement to deploy an initial 30-megawatt footprint of AMD AI compute infrastructure across Rackspace's global data centers from late this year through 2028. The agreement formalizes a previously announced memorandum of understanding and targets regulated enterprise workloads, including healthcare providers that have expressed early interest in clinical AI and large-scale inference. Upon full deployment, the 30MW of dedicated AMD compute will deliver a complete technology stack comprising Enterprise AI Cloud, Enterprise Inference Engine, Inference-as-a-Service, and Bare Metal AMD Instinct. Financial terms were not disclosed.

Additionally, RBC Capital Markets raised its price target on Rackspace from $2.50 to $4.00 while maintaining a Sector Perform rating. Separately, the company disclosed a restructuring plan reducing its global workforce by approximately 15%, expected to incur $14 million to $19 million in one-time charges aimed at optimizing operational efficiency.

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