Rackspace Technology (NASDAQ:RXT) shares climbed as much as 10% on Monday morning, continuing the strong momentum seen after last week’s explosive rally.
The stock surged 56% on Friday and has now gained more than 200% since the company released earnings and announced a strategic partnership with AMD on May 7.
Short Covering Appears to Fuel Momentum
Recent gains in Rackspace shares appear to have been amplified by short covering activity.
According to the latest published market data, approximately 24.55% of the company’s outstanding shares were sold short, with the days-to-cover ratio standing at 3.1.
The sharp upward move likely forced some bearish investors to close positions, adding further buying pressure to the stock.
AMD Partnership Focuses on Enterprise AI Infrastructure
Last week, Rackspace Technology and AMD announced a Memorandum of Understanding outlining plans for a multiyear strategic partnership centered on enterprise artificial intelligence infrastructure.
The collaboration aims to create an Enterprise AI Cloud platform tailored for regulated industries and sovereign workloads.
Under the agreement, the companies plan to integrate AMD Instinct GPUs and EPYC CPUs into a fully managed and governed AI stack.
Rackspace said it intends to manage the entire platform stack, spanning from semiconductor hardware through to enterprise AI deployment and operational outcomes.