Buying Rackspace Technology After Major AMD Agreement
We’re adding the name to our small-cap portfolio after an exciting announcement.
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Rackspace Technology (RXT) has been around for a while. The firm was founded in San Antonio, Texas in 1998. The stock has traded publicly on the Nasdaq since 2020 and had traded publicly under the ticker symbol RAX from 2008 into 2016 at the New York Stock Exchange. That’s when Apollo Global Management took the firm private.
The firm provides services for what it refers to as the “full enterprise AI stack.” The firm is now seen as an AI infrastructure solutions provider that dabbles in the hybrid cloud, the “multi-cloud,” big data services, security and corporate management services. In short, Rackspace designs, builds and operates cloud environments for clientele across all major technology platforms.
On Tuesday morning, Advanced Micro Devices (AMD) and Rackspace signed an agreement for the phased deployment of an initial 30 MW of AMD AI compute. This deployment will occur across all of Rackspace’s data centers on a global scale starting later this year and running into 2028. The collaboration will incorporate both AMD Instinct GPUs (including MI355X, MI350P and successor GPUs), and AMD EPYC CPUs inside an integrated enterprise AI cloud architecture.
The companies did make note that this agreement will accelerate delivery of four integrated capabilities: Enterprise AI Cloud, Enterprise Inference Engine, Inference as a Service, and Bare Metal AMD Instinct.
This will result in Rackspace offering a complete, governed stack from bare metal compute through fully operated inference. RXT closed at $5.92 on Monday night. The shares are trading close to $7.50 overnight. The portfolio would like to add a few shares of RXT after the opening should there be a dip after the algos rip off the pajama traders. If so, we will be there.
Other Recent Portfolio News
Amazon (AMZN)
On Tuesday morning, analyst Brad Erickson of RBC Capital reiterated a “buy” rating on (AMZN) as well as his $320 target price. Erikson is rated at four stars out of five by TipRanks. Over the past two years, Erickson has had a 46% success rate with an average return of 9.8%.
Planet Labs (PL)
On Monday, analyst Edison Yu of Deutsche Bank was assigned coverage of Planet Labs (PL) by his firm. Yu initiated PL with a “buy” rating, while cutting his firm’s target price from $38 to $36. Yu is rated at four stars out of five by TipRanks. Over the past two years, Yu has had a 47% success rate with an average return of 32.7%.
Palantir Technologies (PLTR)
On Tuesday, Surf Air Mobility (SRFM) highlighted the company’s recent participation in AIPCon 10 on June 4, 2026, where the firm showcased its SurfOSTM software enhanced with Palantir’s (PLTR) artificial intelligence platform. As part of the demo, Surf Air Mobility featured BrokerOS.
On Monday, analyst Karl Keirstad of UBS reiterated a “buy” rating on PLTR as well as his $200 target price. Keirstad is rated at five stars out of five by TipRanks. Over the past two years, Keirstad has had a 59% success rate with an average return of 25.5%.
On Monday, analyst Alex Zukin of Wolfe Research upgraded PLTR to a “hold” rating from “sell” while increasing his target price from $128 to $207. Zukin is rated at five stars out of five by TipRanks. Over the past two years, Zukin has had a 55% success rate with an average return of 16.1%.
Snap (SNAP)
On Monday, analyst Naved Khan of B Riley Securities reiterated a “buy” rating on (SNAP) as well as his $10 target price. Khan is rated at five stars out of five by TipRanks. Over the past two years, Khan has had a 55% success rate with an average return of 13.9%.
Monday’s Intention vs Monday’s Actual Trade
Intention: Sell 15 shares of (SOFI) at $17 or better
Actual trade: Sold 15 shares of SOFI at $17.09
Tuesday’s Intentions
Purchase 10 shares of RXT at or close to the last sale of $7.50
Purchase 25 shares of RXT at $6.50 or better on a sell-off later on Tuesday
Note: The intention is to eventually scale the stock in and grow the position to a size of about 100 shares
Current Positions
Long 100 shares of (ALTO) at $5.79. Target price: $9. Last sale: $5.55.
Long 3 shares of AMZN at $258.0567. Target price: $324. Last sale: $247.40.
Long 60 shares of (EVLV) at $5.9895. Target price: $8.50. Last sale: $6.14.
Long 200 shares of (OCUL) at $8.271. Target price: $11. Last sale: $8.99.
Short one OCUL $11 September 18 call at $1.65, Last sale: $1.40.
Short one OCUL $9 July 17 call at $0.90. Last sale: $1.29.
Long 150 shares of (ONDS) at $9.7624. Target price: $14. Last sale: $9.48.
Long 15 shares of PL at $34.32. Target price: $55. Last sale: $29.79.
Long 10 shares of PLTR at $137.906. Target price: $194. Last sale: $134.22.
Long 8 shares of (RKLB) at $77.9288. Target price: $185. Last sale: $109.50.
Long 150 shares of (SIDU) at $3.0909. Target price: $6. Last sale: $3.42.
Long 100 shares of SNAP at $5.625. Target price: $7.50. Last sale: $5.72.
Short one SNAP October 16 $6 call at $0.87. Last sale: $0.77.
Long 135 shares of SOFI at $15.8617. Target price: $24. Last sale: $17.10.
Short one SOFI August 21 $20 call at $1.02. Last sale: $0.94.
Long 35 shares of (VELO) at $12.3231. Target price: $36. Last sale: $23.04.
Cash: $450.41.
Portfolio Value: $11,773.39, +17.7% from inception on March 24.
At the time of publication, Guilfoyle was long ALTO, AMZN, EVLV, OCUL, ONDS, PL, PLTR, RKLB, SIDU, SNAP, SOFI and VELO.
