Rackspace Technology, Inc. (RXT): 8 Best Rising Tech Stocks to Buy According to Hedge Funds

With a one-month return of 337.59%, Rackspace Technology, Inc. (NASDAQ:RXT) is among the 8 Best Rising Tech Stocks to Buy According to Hedge Funds.

On May 12, BMO Capital raised its price target on Rackspace Technology, Inc. (NASDAQ:RXT) to $5 from $2 while maintaining a Market Perform rating following the company’s first-quarter results. According to the analyst, one of the most significant developments during the quarter was Rackspace’s memorandum of understanding with Advanced Micro Devices focused on integrating AMD CPUs and GPUs into governed AI infrastructure solutions. BMO noted that the quarter reinforced its view that Rackspace is pursuing a strategic approach centered on partnerships with leading AI ecosystem companies such as Palantir Technologies and AMD in order to strengthen its positioning for regulated and enterprise AI workloads.

Previously, on May 7, Rackspace Technology, Inc. (NASDAQ:RXT) and Advanced Micro Devices announced a multiyear strategic partnership framework designed to create an Enterprise AI Cloud tailored for regulated enterprises and sovereign workloads. Under the agreement, AMD Instinct GPUs and EPYC CPUs are expected to be integrated into a fully managed and governed enterprise AI stack operated by Rackspace. The companies stated that the partnership aims to create a new category of managed enterprise AI infrastructure by combining dedicated AMD compute resources with Rackspace’s managed operational model. The initiative is intended to deliver a fully integrated AI infrastructure platform spanning bare-metal compute, inference tooling, governed runtime environments, and enterprise-grade service-level agreements calibrated to sovereignty, security, and compliance requirements.

Founded in 1998 and headquartered in San Antonio, Rackspace Technology, Inc. (NASDAQ:RXT) is a global provider of multi-cloud, hybrid-cloud, and enterprise AI infrastructure solutions. The company specializes in IT consulting, cloud migration, cybersecurity, and managing enterprise workloads across major cloud and infrastructure platforms.

While we acknowledge the potential of RXT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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