Rackspace Technology shares surge 55.97% on AMD AI cloud partnership announcement

Rackspace Technology closed at $5.49, up 55.97%, after announcing a memorandum of understanding with AMD to develop governed Enterprise AI Cloud infrastructure for regulated customers in healthcare, finance, government, and sovereign-cloud sectors.

Trading volume reached 150.9 million shares, about 389% above the three-month average of 30.6 million shares. The partnership is a framework agreement rather than a confirmed revenue contract at this stage.

Rackspace reported first-quarter revenue of $678 million (up 2%), with Public Cloud revenue at $443 million and Private Cloud revenue at $235 million, returning to profitability with about $8 million in net income.