Gabz
Stock & Crypto Trader, SuperTrend Indicator Owner
Rackspace fell into the $4.50-$5.00 base that has held all year, even as it signs AI deals, after its worst day ever on a guidance cut and a $250M raise. It has inked a 30MW AI compute deal with AMD and launched a framework with Palantir combining Foundry and AIP with Rackspace's governed infrastructure for regulated and sovereign enterprises. A break below $4.26 is the line where the view fails. x.com
Rackspace is mispriced as the market punishes lowered 2026 guidance while it deliberately sheds low-margin legacy hosting to become an enterprise AI stack operator. Palantir named it a preferred partner for deploying Foundry and AIP in regulated and sovereign markets, and it signed a 30 MW phased deployment of AMD AI compute. Ties with Rubrik, Uniphore, Dell and VMware deepen the moat. CEO Gajen Kandiah says a capital raise will speed the strategy and unlock revenue and EBITDA growth from 2027. … Show more
Rackspace is AMD's key neocloud partner, building governed enterprise AI cloud infrastructure at scale on AMD Instinct GPUs and EPYC CPUs, so AMD's accelerating AI momentum flows directly to it. Per a SemiAnalysis (@SemiAnalysis_) thread, an AMD senior director's public GitHub lists Anthropic as a high-priority customer, still in evaluation. AMD's Advancing AI event this week could bring big announcements and ecosystem updates. x.com
Rackspace's $250m at-the-market offering to retire about 10% of its debt, paired with a guidance cut, leaves shareholders badly hurt. It shows how absurdly priced AI-linked names have become. x.com
Rackspace looks primed for a short squeeze: Apollo owns 52% of the stock while 22% of shares are sold short, and Apollo is unlikely to put up with that. Rackspace has also signed an MOU with AMD. x.com
AMD trades at a PEG of about 0.9x, discounted because the market has spent a decade treating it as the eternal runner-up, a view OpenAI clearly disagrees with. Its 6-gigawatt compute partnership with OpenAI came with a warrant for 160 million shares, and MI400 Helios racks are shipping into it. x.com
AMD's strong Q2 set up a classic sell-the-news reaction against a stock that had priced in perfection. Capex hit $808M, nearly 3x what many modeled, compressing free cash flow. The roughly $13B Q3 guide beat the $12.5B consensus but not whispers near $14B, with growth slowing to about 41%. Management guided no near-term margin expansion, server CPU supply is constrained, and Helios and the multi-gigawatt Anthropic, OpenAI and Meta deals are mainly a 2027 story. x.com
Palantir is finally getting the premium it deserves as software returns to favor, with software firms among the biggest buyers of hyperscaler compute. AWS grew 37%, Google Cloud accelerated to 82% and Azure grew 43%, with cloud growth surprising to the upside across all of them; beyond frontier model companies, software is what runs on these platforms. The same Palantir quarter reported last time could have sent the stock down. x.com
Rackspace's new AMD enterprise AI cloud partnership makes it one of the most attractive earnings gappers, because the stock trades at just 0.25x revenue with a small market cap and small float. x.com
Riot Platforms appears to be shifting toward compute and services rather than pure bitcoin mining, backed by improving financials. A major AI infrastructure investment signals confidence in compute-intensive workloads, and an expanding AMD partnership points to sustained demand for high-performance AI processors; together they suggest the shift. x.com
AMD could gain a major new compute customer in Anthropic. Per @bubbleboi, AMD is rumored to take a stake in Anthropic in exchange for Anthropic committing to buy 2 GW of AI compute from AMD, similar to the deal AMD struck with OpenAI months ago. x.com
