Akamai's Cloud Infrastructure Seen as Undervalued Opportunity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 30 2026
0mins
Source: seekingalpha
- Growth Potential Underestimated: Oppenheimer analysts highlight that Akamai's cloud infrastructure business is undervalued, particularly following its $1.8 billion deal with Anthropic, projecting future growth to align with GDP and free cash flow margins to normalize above 20%.
- Strong Stock Performance: As of Thursday noon, Akamai shares rose 4.5%, surging approximately 40% year-to-date, indicating a gradual market recognition of its cloud/AI inferencing business, although analysts believe the market's view on its growth opportunities remains conservative.
- Capital Investment Requirements: To support future growth, Akamai plans to expand its capacity to 80-100MW by the end of 2028, a significant increase from an estimated 17MW by the end of 2025, with its CIS business expected to provide GPU and CPU compute at a cost of $20-$25 million per MW.
- Strategic Partnership Outlook: The collaboration with Anthropic will utilize a more expensive GPU-centric architecture costing $35 million per MW, further driving growth in Akamai's cloud and security business, with analysts maintaining a positive outlook on its future performance.
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Analyst Views on AKAM
Wall Street analysts forecast AKAM stock price to fall
11 Analyst Rating
6 Buy
5 Hold
0 Sell
Moderate Buy
Current: 112.730
Low
89.00
Averages
103.73
High
115.00
Current: 112.730
Low
89.00
Averages
103.73
High
115.00
About AKAM
Akamai Technologies, Inc. develops and provides solutions for global enterprises to build, secure and accelerate their applications and digital experiences. It provides solutions in three offerings: security, delivery and other cloud applications and cloud infrastructure services. Security includes solutions that are designed to protect business online by keeping infrastructure, websites, applications, APIs, networks and users safe. Delivery and other cloud applications include delivery solutions that are designed to enable business online, including media delivery and web and mobile performance, and other cloud applications. Cloud infrastructure services include compute and storage solutions, EdgeWorkers product and the compute partner solutions running on its platform. It operates two security platforms: Application Protection and Zero Trust Network Security. LayerX offers a browser security platform that allows enterprises to add protections to their preferred, existing browsers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- High Network Reachability: Among the processed vulnerabilities, 86% are network reachable, indicating that these flaws can be easily exploited at the network level, highlighting the need for rapid response and remediation efforts.
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- Global Network Advantage: By leveraging Akamai's massive, globally distributed network, the combined solution will provide enterprises with robust security protections, ensuring the safety of partners and supply chain ecosystems, further solidifying Akamai's leadership in the cybersecurity space.
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- Strong Stock Performance: As of Thursday noon, Akamai shares rose 4.5%, surging approximately 40% year-to-date, indicating a gradual market recognition of its cloud/AI inferencing business, although analysts believe the market's view on its growth opportunities remains conservative.
- Capital Investment Requirements: To support future growth, Akamai plans to expand its capacity to 80-100MW by the end of 2028, a significant increase from an estimated 17MW by the end of 2025, with its CIS business expected to provide GPU and CPU compute at a cost of $20-$25 million per MW.
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- Surge in Vulnerability Processing: Chainguard's Athena coalition has processed over 40,000 vulnerabilities within three weeks of its launch, doubling its intake, with 42% classified as critical or high severity, underscoring the urgency and complexity of open-source software security.
- High Network Reachability: Among the processed vulnerabilities, 86% are network reachable, indicating that these flaws can be easily exploited at the network level, highlighting the need for rapid response and remediation efforts.
- Strengthened Industry Collaboration: The addition of new members such as Akamai and Morgan Stanley to the Athena coalition reflects a growing consensus in the industry that coordinated responses to open-source vulnerabilities are essential, enhancing the coalition's defensive capabilities and resource integration.
- Challenges from Frontier AI Models: As frontier AI models rapidly discover zero-day vulnerabilities, the time gap between discovery and exploitation has shrunk to hours, making Athena's coordinated defense strategy crucial in addressing this emerging threat.
See More
Akamai Completes Acquisition of LayerX to Enhance Cybersecurity Capabilities
- Acquisition Completed: Akamai Technologies has successfully acquired secure enterprise browser provider LayerX for approximately $205 million, significantly enhancing its cybersecurity product portfolio and competitive positioning in the market.
- Security Platform Integration: The browser security platform offered by LayerX will integrate with Akamai's Zero Trust platform, enabling enterprises to better manage and secure interactions between employees and AI applications, addressing the growing demand for security.
- Global Network Advantage: By leveraging Akamai's massive, globally distributed network, the combined solution will provide enterprises with robust security protections, ensuring the safety of partners and supply chain ecosystems, further solidifying Akamai's leadership in the cybersecurity space.
- Increased Market Trust: This acquisition not only strengthens Akamai's product line but also enhances its trust among global enterprises, expected to attract more customers to its comprehensive cybersecurity solutions.
See More
Akamai to Hold Investor Conference Call on August 6
- Earnings Call Announcement: Akamai Technologies will hold an investor conference call on August 6, 2026, at 4:30 p.m. ET to discuss its Q2 2026 financial results, which may include forward-looking guidance from management, thereby aiding investors in assessing the company's future performance.
- Live Broadcast: The call will be streamed live on Akamai's Investor Relations page, ensuring that global investors can access the latest updates in real-time, enhancing transparency and boosting investor confidence.
- Dial-in Information Provided: The U.S. dial-in number is (833) 634-5020, with an international number of (412) 902-4238 and a password of “Akamai Technologies,” simplifying the process for investors to participate in the call.
- Replay Availability: Following the call, a replay will be available for two weeks by calling (855) 669-9658 (or (412) 317-0088 for international calls) and using Conference ID: 8525174, ensuring that investors who cannot attend live can still access critical information.
See More
Akamai's Cloud Infrastructure Seen as Undervalued Opportunity
- Growth Potential Underestimated: Oppenheimer analysts highlight that Akamai's cloud infrastructure business is undervalued, particularly following its $1.8 billion deal with Anthropic, projecting future growth to align with GDP and free cash flow margins to normalize above 20%.
- Strong Stock Performance: As of Thursday noon, Akamai shares rose 4.5%, surging approximately 40% year-to-date, indicating a gradual market recognition of its cloud/AI inferencing business, although analysts believe the market's view on its growth opportunities remains conservative.
- Capital Investment Requirements: To support future growth, Akamai plans to expand its capacity to 80-100MW by the end of 2028, a significant increase from an estimated 17MW by the end of 2025, with its CIS business expected to provide GPU and CPU compute at a cost of $20-$25 million per MW.
- Strategic Partnership Outlook: The collaboration with Anthropic will utilize a more expensive GPU-centric architecture costing $35 million per MW, further driving growth in Akamai's cloud and security business, with analysts maintaining a positive outlook on its future performance.
See More
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- Market Volatility Impact: The S&P 500 declined nearly 2% this week, while the Nasdaq Composite fell 4.6%, indicating significant pressure from a sharp sell-off in tech stocks, particularly in the semiconductor sector.
- Oversold Stocks Identification: Using a 14-day relative strength index (RSI), both Intercontinental Exchange and CME Group recorded an RSI of 24.4, suggesting these stocks are oversold and may rebound in the near term.
- CME Lawsuit Impact: CME's stock dropped 10% this week due to concerns over risks posed to traditional exchanges, following its lawsuit against the Commodity Futures Trading Commission, exacerbating its double-digit losses for June.
- Defensive Stocks in Favor: Despite overall market declines, Cardinal Health emerged as the most overbought stock with an RSI of 84.4, surging over 7% as investors shifted towards defensive sectors, reflecting a change in market sentiment.
See More
CIBR ETF 52-Week Price Analysis
- Price Range Analysis: CIBR ETF's 52-week low is $60.07 per share and high is $94.395, with the last trade at $83.86, indicating relative stability and investor confidence in the current market.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides valuable insights for investors, helping to assess market trends and potential buying opportunities.
- ETF Unit Trading Mechanism: ETFs trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify ETFs experiencing significant inflows or outflows, allowing investors to stay informed about market dynamics and investment opportunities.
See More
