Rackspace Technology Inc. (RXT), Nebius Group (NBIS), and Arm Holdings (ARM) surged to 52-week highs on Wednesday following bullish analyst actions and strategic business developments. RXT shares climbed after RBC Capital raised its price target citing an AMD partnership, while NBIS gained on data center expansion commitments and ARM rose after Bernstein increased its revenue forecast. The moves reflect growing Wall Street confidence in AI infrastructure demand, with all three companies positioning themselves to capitalize on enterprise AI adoption and cloud computing growth.
RBC Capital Raises Rackspace Price Target on AMD Partnership
Rackspace Technology shares surged to $8.60 on Wednesday, extending a three-day rally to their highest level in over four years. RBC Capital raised its price target on the stock to $4 from $2.50 while maintaining a 'Sector Perform' rating, according to The Fly. Analyst Daniel Perlin cited the company's agreement with Advanced Micro Devices Inc. (AMD) as a key catalyst for growth, stating the partnership advances Rackspace's goal of becoming a leading enterprise AI platform for regulated sectors.
The multi-year deal outlines that Rackspace will deploy AMD GPUs and EPYC processors across its global data centers through 2028. The company also announced a 10% workforce reduction expected to generate up to $85 million in annual savings, with plans to reinvest part of those savings into engineering talent and AI solution development. RXT stock closed up more than 21% on Wednesday.
Nebius Commits £1.7 Billion to UK Data Center Expansion
Nebius Group shares jumped to a 52-week high of $297.93 on Wednesday as investors rewarded the company's aggressive expansion in AI cloud infrastructure. The Amsterdam-based company committed £1.7 billion ($2.3 billion) to develop three data centers in the U.K. The announcement follows plans for a 310-megawatt facility in Finland, valued at more than $10 billion, and a 240-megawatt data center in France.
The expansion follows a major contract with Microsoft and a $24 billion agreement with Meta Platforms signed in March 2026. The company also completed its acquisition of Eigen AI and signed a 10-year, 22-megawatt AI infrastructure agreement with Kao Data. NBIS shares closed nearly 6% higher on Wednesday.
Bernstein Increases Arm Revenue Forecast to $22 Billion
Arm Holdings shares climbed to a 52-week high of $444.80 on Wednesday after Bernstein raised its price target to $500 from $300. The analyst cited the company's growing role in powering agentic AI workloads, stating that Arm's energy-efficient CPU architecture is well-positioned to benefit from rising demand for AI agents requiring continuous processing and inference capabilities.
Bernstein stated that Arm is evolving beyond its traditional intellectual property licensing model into a CPU supplier, significantly expanding its addressable market. The firm increased its 2030 revenue forecast for Arm to $22 billion, up from an earlier estimate of $15 billion, and raised its long-term earnings outlook. ARM shares closed nearly 6% higher on Wednesday.
FAQ
What caused RXT stock to surge on Wednesday?
RXT shares surged to $8.60 after RBC Capital raised its price target to $4 from $2.50, citing the company's multi-year partnership with AMD to deploy GPUs and EPYC processors across global data centers through 2028.
Why did Bernstein raise its price target on ARM?
Bernstein raised ARM's price target to $500 from $300, citing the company's growing role in powering agentic AI workloads and its evolution from an intellectual property licensing model into a CPU supplier, which expands its addressable market.
What is Nebius Group's investment commitment in the UK?
Nebius Group committed £1.7 billion ($2.3 billion) to develop three data centers in the U.K., following previous plans for facilities in Finland valued at more than $10 billion and a 240-megawatt data center in France.
