Rackspace Technology, Inc. (NASDAQ:RXT) shares are surging on Tuesday after the company penned a definitive deal with Advanced Micro Devices, Inc. (NASDAQ:AMD) for a phased deployment of the initial 30 megawatts of AMD-based AI compute infrastructure.

The companies plan to begin rollout in late 2026 and continue through 2028.

Partner On AI Compute Infrastructure

The architecture will integrate AMD Instinct GPUs (including MI355X and MI350P, along with future generations) and AMD EPYC CPUs within a unified enterprise AI cloud framework, enabling workload-specific routing to optimize performance and accountability across end-to-end operations.

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This collaboration aims to enhance Rackspace's offerings in regulated industries, particularly in healthcare, as both companies are dedicating resources to engage enterprise customers and develop AI solutions together.

As enterprises move from AI experimentation toward agent-driven workflows embedded in core systems, demand is increasing for secure, accountable infrastructure designed for production-scale AI.

This partnership is expected to provide a governed AI stack that meets the needs of enterprises requiring accountability and performance in their AI workloads.

Notably, the agreement formalizes the earlier memorandum of understanding announced on May 7, 2026, and positions AMD as a core silicon partner within Rackspace's governed AI infrastructure stack.

RXT Technical Outlook: Momentum And Key Chart Levels

Over the past 12 months, Rackspace Technology has seen a remarkable gain of 334.93%. Currently, the stock is trading at $7.65, which is 35.9% above its 20-day simple moving average (SMA) of $4.99 and 275.7% above its 200-day SMA of $1.81. The moving average convergence divergence (MACD) is below its signal line, indicating that upside momentum is fading unless it can reclaim that baseline. This suggests that while the stock is experiencing a significant uptick, the momentum may not be as strong as it appears.

Key Resistance: $7.50 — a nearby level where rebounds can stall.

Key Support: $4.99 — a critical level that aligns with the 20-day SMA, which could provide a cushion if the stock pulls back.

RXT Earnings Preview And Analyst Price Targets

Looking further out, the next major catalyst for the stock arrives with the August 6, 2026 (estimated) earnings report.

  • EPS Estimate: Loss of 3 cents (Up from Loss of 6 cents)
  • Revenue Estimate: $657.10 million (Down from $666.30 million)

Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price target of $2.50. Recent analyst moves include:

  • RBC Capital: Sector Perform (Raises Target to $2.50) (February 27)
  • RBC Capital: Sector Perform (Lowers Target to $1.75) (November 10, 2025)
  • BMO Capital: Market Perform (Lowers Target to $1.40) (August 12, 2025)

How Rackspace (RXT) Ranks On Momentum And Market Signals

Below is the Benzinga Edge scorecard for Rackspace Technology, highlighting its strengths and weaknesses compared to the broader market:

  • Momentum: Bullish (Score: 99.45) — Stock is outperforming the broader market.

The Verdict: Rackspace Technology's Benzinga Edge signal reveals a momentum-driven story, indicating strong performance relative to the market. However, investors should remain cautious as the fading MACD suggests that momentum may not sustain the recent price gains.

RXT Price Action: Rackspace Technology shares were up 11.41% at $6.72 at the time of publication on Tuesday, according to Benzinga Pro data.

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