Rackspace Technology gave shareholders a reason to celebrate on June 16, with its stock surging roughly 30%. The catalyst was a definitive agreement with AMD to deploy AI compute infrastructure across its global data center footprint.
The deal formalizes a prior agreement. A non-binding Memorandum of Understanding was signed on May 7, outlining a governed Enterprise AI Cloud for regulated and sovereign workloads. The new binding contract commits to a phased rollout of 30 megawatts of AMD-based AI compute capacity from late 2026 through 2028.
The partnership pairs AMD’s Instinct GPUs and EPYC CPUs with Rackspace’s managed services layer, providing the compliance and security guardrails required for enterprise AI deployment at scale.
The stock jump extended an impressive rally. Shares had already climbed approximately 55% after the initial May announcement, which coincided with Rackspace reporting Q1 2026 revenue of $678.1 million.
For AMD, the partnership is a critical win in the ongoing battle for enterprise AI market share against dominant competitor Nvidia. Investors will now track whether Rackspace converts this infrastructure commitment into recurring enterprise contracts and if the deployment timeline remains on schedule.