Rackspace Technology (NASDAQ: RXT) Surges on AMD AI Deal, Analyst Raises Price Target with Caution

• Rackspace Technology (NASDAQ: RXT) expanded its partnership with Advanced Micro Devices (NASDAQ: AMD) to deploy 30 MW of AMD-based compute capacity for enterprise AI workloads.
• RBC Capital analyst Daniel Perlin raised Rackspace Technology's price target to $4.00 from $2.50, though this still implies a potential 35.6% downside from its current stock price.
• To fund its AI transformation initiatives, Rackspace Technology announced a 15% reduction in its global workforce.

Rackspace Technology (NASDAQ: RXT) is a company that helps businesses manage their cloud computing services. It provides multi-cloud solutions, which means it supports clients using different cloud platforms. The company operates in a competitive market, often working alongside major cloud providers like Amazon Web Services and Microsoft Azure.

Recently, Rackspace Technology announced an expanded partnership with Advanced Micro Devices (NASDAQ: AMD). This deal involves deploying 30 MW of AMD-based compute capacity for enterprise AI workloads. Following the news, the company's stock price increased by 4.99% to $6.21, with a market capitalization of approximately $1.55 billion.

On June 17, 2026, analyst Daniel Perlin of RBC Capital raised the price target for Rackspace Technology. The target was increased to $4.00 from the previous $2.50. A price target is an analyst's projection of a stock's future price, indicating what they believe it is worth.

Despite the positive news driving the stock up, the new analyst target suggests caution for investors. The $4.00 price target represents a potential downside of about 35.6% from the stock's price of $6.21 at the time. This means the analyst believes the stock may be overvalued at its current price.

To fund this AI transformation, Rackspace also announced a 15% reduction in its global workforce, as highlighted by Invezz. The stock's trading day saw high volume of 81.62 million shares, with prices moving between a low of $6.04 and a high of $7.16.