Rackspace Signs 30MW Compute Power Agreement with AMD
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: stocktwits
- Compute Power Agreement: Rackspace has signed an agreement with AMD for phased deployments of 30 megawatts of compute power, which is expected to provide accelerated computing support for enterprise customers, particularly in the healthcare sector, addressing the surging demand for AI.
- Workforce Realignment: The Rackspace board has approved a workforce realignment plan to cut 15% of its global workforce, which is projected to save up to $85 million annually, with these funds redirected towards building enterprise AI infrastructure in collaboration with AMD.
- Technological Collaboration: AMD will supply its MI355X and MI350P GPUs along with EPYC CPUs to power Rackspace's global data centers, which is anticipated to enhance the company's competitiveness in the enterprise AI market, especially within the healthcare industry.
- Positive Market Reaction: Following the signing of the agreement, Rackspace's stock surged by 25%, reflecting investor optimism regarding the company's growth potential, particularly in the context of skyrocketing demand for AI infrastructure.
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Analyst Views on RXT
Wall Street analysts forecast RXT stock price to fall
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 7.530
Low
1.30
Averages
1.48
High
1.75
Current: 7.530
Low
1.30
Averages
1.48
High
1.75
About RXT
Rackspace Technology, Inc. is an end-to-end hybrid, hybrid cloud, and artificial intelligence (AI) solutions company. The Company designs, builds, and operates its customers’ cloud environments across all technology platforms, irrespective of technology stack or deployment model. The Company operates through two segments. Its Public Cloud segment is a service-centric, capital-light model providing value-added cloud solutions through managed services, elastic engineering and professional services offerings for customer environments hosted on the Amazon Web Services (AWS), Microsoft Azure and Google Cloud public cloud platforms. Its Private Cloud segment is a technology-forward, capital-intensive model providing managed service offerings for customer environments hosted in one of its data centers as well as in those owned by customers or by third parties. Private Cloud product portfolio includes Programmatic Infrastructure, Cloud Operating Systems, Platform-as-a-Service, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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