RXT Stock’s Wild 200% Rally Last Week Has Retail Bulls Comparing It To IREN, Sandisk Momentum Plays

• Rackspace swung to profit in Q1, sparking investors’ confidence. 
• Rackspace and AMD plan to build a managed AI platform combining AMD chips with the former’s cloud services.
• The stock gained more than 210% last week.  

Rackspace Technology (RXT) stock continued its rise overnight, after hitting a 52-week high on Friday and clocking its best week in two months, driven by improving financial results and a major push into artificial intelligence infrastructure.

The stock gained momentum, rocketing over 55% on Thursday and Friday, as the company posted a surprise return to profitability in the fiscal first-quarter (Q1) and announced a partnership with chipmaker AMD. RXT stock gained more than 210% last week.  

RXT’s Profit Rebound Drives Market Optimism

Rackspace reported a Q1 revenue of $678.1 million. It also reported earnings of $0.30 per share, compared with a loss of $0.31 per share a year earlier. Both the metrics surpassed the analysts’ consensus estimates of $660 million and a loss of $0.03, respectively, according to Fiscal AI data. 

For the full year 2026, Rackspace expects revenue between $2.6 billion and $2.7 billion, compared to the Street estimate of $2.65 billion.

Rackspace Technology stock traded over 12% overnight, heading into Monday. 

RXT’s AMD Deal To Build A Controlled AI Platform 

Rackspace and AMD have outlined a framework for a multi-year partnership that will combine AMD’s high-performance computing chips with the former’s managed cloud infrastructure to create a fully governed enterprise AI environment. 

Under this plan, companies would not need to build and manage separate AI systems on their own. Rackspace and AMD want to offer one complete platform that combines hardware, software, and operations in a fully managed setup.

“Governing AI infrastructure in regulated environments with defined accountability is not something you bolt on after the fact. It must be built in from the start,” said CEO Gajen Kandiah. 

What Are RXT’s Retail Traders Saying? 

On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory. 

A user said, “$RXT  is this baby the next $SNDK  after the $AMD  news?” 

Another user said, “we may see $7 tomorrow but 10 by Friday then a cool down period but when nxt earnings hit. Im Betting  25 to 30 easy.” 

Another one said remarked, “the bears are out in full force. That’s how you know this is about to blow,” and added, “Reminds me of $IREN when it was at $6 and just created partnerships with the big boys.”

RXT stock has gained over 465% year-to-date. 

Also See: RKLB Stock Gains Overnight After Best Day In Over 4 Years: Neutron Completes Critical Test

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