Rackspace Shares Jump 30% After Securing AMD-Powered AI Infrastructure Agreement (RXT)

US indexes posted weekly declines as a tech selloff and geopolitical uncertainty pressured sentiment. The Nasdaq fell about 3% for the week, and was down 1.4% on Friday. Netflix shares dropped nearly 12% after revenue missed and Q3 guidance was below estimates. AMD drew attention ahead of an AI event; TRV rose on strong results, while Intuitive Surgical and SpaceX fell.

CNBC’s Morning Squawk reports tech weakness as Nasdaq-100 futures fall and the VanEck Semiconductor ETF (SMH) drops nearly 7% on the week. Taiwan Semiconductor’s higher spending forecast is cited for a chip sell-off. Netflix shares fall over 11% after guidance disappoints. The newsletter also cites a CNBC economic survey showing 60% pessimism and discusses retail theft and SEC/CFTC prediction-market oversight.

BofA Global Research raised its Advanced Micro Devices (AMD) price target to $620 from $550, citing a shift in AI infrastructure needs toward greater CPU importance for agentic workloads. BofA said AMD’s EPYC server CPUs, upcoming Venice CPUs, MI455X GPU, and Helios rack-scale solution could benefit from strong server demand. It expects Q2 revenue of about $11.28B and non-GAAP EPS of $1.62.

Micron (MU) fell about 8% after reports cited fears that Chinese DRAM makers, including CXMT, could intensify competition and pressure DRAM pricing. Apple is testing CXMT chips, according to the article. Intel (INTC), AMD (AMD) and Marvell (MRVL) also dropped, while SOXX fell about 4%. Micron guided FQ4 revenue of $50B plus or minus $1B.

The US Commerce Department’s BIS reclassified the UAE to Export Administration Regulations Country Group A:5, enabling license-free exports under the STA rule. This allows UAE entities such as G42 and Core42 to receive Nvidia Blackwell and AMD Instinct chips without per-shipment licenses. Congress questioned BIS officials about potential conflicts tied to UAE-linked crypto and AI deals.

U.S. index futures were mixed as investors weighed Middle East tensions and easing inflation signals. Taiwan Semiconductor Manufacturing reported Q2 profit up 77% to a record, EPS $4.31 vs $3.80 estimates, but shares fell ~4% on higher capex and margin concerns. UnitedHealth rose 7.6% on Q2 adjusted EPS $6.38 beating forecasts. Abbott gained 4.4%.