--- title: "Rackspace Keeps Climbing As AMD Deal And Earnings Fuel Momentum" type: "News" locale: "en" url: "https://longbridge.com/en/news/286121569.md" description: "Rackspace Technology Inc. (NASDAQ:RXT) shares surged over 5 days following an AI partnership with AMD and positive Q1 results. Revenue reached $678.1 million, exceeding estimates, driven by a 7% increase in public cloud revenue. Despite a wider adjusted loss of six cents per share, the company reaffirmed its fiscal 2026 revenue guidance. The stock's RSI indicates overbought conditions, with key resistance at $6.00 and support at $1.76. Analysts maintain a Hold rating with an average price target of $2.50, while short interest rose to 23.86 million shares." datetime: "2026-05-12T14:41:55.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286121569.md) - [en](https://longbridge.com/en/news/286121569.md) - [zh-HK](https://longbridge.com/zh-HK/news/286121569.md) --- # Rackspace Keeps Climbing As AMD Deal And Earnings Fuel Momentum **Rackspace Technology Inc.** (NASDAQ:RXT) shares continue climbing higher in Tuesday trading, after the stock surged over 5 days, following the company's AI partnership announcement with **Advanced Micro Devices Inc.** (NASDAQ:AMD) and first quarter results. Rackspace and AMD signed a memorandum of understanding to establish a multi-year partnership to build an Enterprise AI Cloud for regulated industries. The collaboration will integrate AMD's Instinct GPUs and EPYC CPUs into Rackspace's managed cloud offerings, with a focus on governance and accountability for AI infrastructure. ## **First Quarter Results** The rally in Rackspace shares followed the company's first-quarter results, which showed revenue of $678.1 million, up 2% year over year and above the Street estimate of $660.83 million. Growth was driven by public cloud revenue, which increased 7% to $443 million, while private cloud revenue declined 6% to $235 million. Adjusted operating profit rose 20% to $31 million, though Rackspace reported an adjusted loss of six cents per share, wider than analyst expectations for a four-cent loss. Gross margin declined to 17.6% from 19.1% a year earlier. Rackspace reaffirmed its fiscal 2026 revenue guidance of $2.6 billion-$2.7 billion, in line with the Street estimate of $2.64 billion. ## Short Interets Rises Short interest in Rackspace Technology increased to 23.86 million shares from 21.92 million in the latest reporting period, representing 20.76% of the public float. Based on the stock's average daily trading volume of 5.25 million shares, it would take about 4.54 days for short sellers to cover their positions. ## RXT Technical Analysis: Bullish Trend Meets Overbought Signals The stock has shown impressive long-term performance, with a 12-month gain of 260.77%. However, the current price of $4.46 is significantly above key moving averages, with the 20-day simple moving average (SMA) at $2.06, indicating a strong bullish trend. The Relative Strength Index (RSI) currently sits at 75.59, suggesting the stock is in overbought territory and could pull back. Additionally, the 20-day SMA is 119.9% above the 50-day SMA, reinforcing the stock’s bullish momentum. - **Key Resistance**: $6.00 — This level represents the 52-week high, which could act as a psychological barrier for traders. - **Key Support**: $1.76 — This is the 50-day SMA, which may provide a cushion if the stock experiences a downturn. ## RXT Earnings Preview And Analyst Price Targets Rackspace Technology, Inc. Common Stock is slated to provide its next financial update on August 6, 2026 (estimated). - **EPS Estimate**: Loss of 3 cents (Up from Loss of 6 cents) - **Revenue Estimate**: $665.06 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) (Feb. 27) - **BMO Capital**: Market Perform (Lowers Target to $1.40) (Aug. 12, 2025) **RXT Stock Price Activity:** Rackspace Technology shares were up 5.01% at $4.92 at the time of publication on Tuesday, according to Benzinga Pro data. _Photo via Shutterstock_ ### Related Stocks - [RXT.US](https://longbridge.com/en/quote/RXT.US.md) - [AMD.US](https://longbridge.com/en/quote/AMD.US.md) - [CLOU.US](https://longbridge.com/en/quote/CLOU.US.md) - [AMUU.US](https://longbridge.com/en/quote/AMUU.US.md) - [DTCR.US](https://longbridge.com/en/quote/DTCR.US.md) - [AMDL.US](https://longbridge.com/en/quote/AMDL.US.md) - [RY.US](https://longbridge.com/en/quote/RY.US.md) - [BMO.US](https://longbridge.com/en/quote/BMO.US.md) ## Related News & Research - [Is AMD a top artificial intelligence (AI) stock to buy?](https://longbridge.com/en/news/286649712.md) - [What's Going On With AMD Stock Tuesday?](https://longbridge.com/en/news/286113769.md) - [AMD CEO Lisa Su in Shanghai predicts five billion daily AI users within five years](https://longbridge.com/en/news/286858740.md) - [Is AMD stock still worth buying after its massive rally?](https://longbridge.com/en/news/286675828.md) - [Ark Invest Again Sells AMD, This Time As Stock Hits 52-Week High While Snapping Up Tempus AI And Circle](https://longbridge.com/en/news/286033572.md)