Jim Cramer spots overlooked AI stock after $11.6 billion deal
Jim Cramer highlighted Akamai Technologies (AKAM) as a potentially undervalued AI play after Anthropic's $11.6 billion deal. Despite initial stock gains, AKAM has since retreated, trading at 16x earnings. Cramer argues the valuation doesn't reflect long-term AI growth potential, citing increased network traffic from AI agents. Akamai's spending on AI infrastructure is pressuring near-term earnings, but Cramer sees this as a buying opportunity.
How this was made
The 30-second read
Why it matters
The article frames the Anthropic deal as a catalyst for a valuation reset, but provides no new financial data beyond the contract size.
Market read
Cramer’s endorsement may generate short‑term buying interest in AKAM, but the core story is a repeat of known contract details.
What to watch
Potential competition from Cloudflare and Fastly, and the need for sustained AI workload volume.
Background
Cramer’s commentary follows Akamai’s recent earnings where AI‑related revenue grew but margins fell due to investment costs.
Ticker impact
Jim Cramer highlights Akamai Technologies as an undervalued play after Anthropic's $11.6 billion AI infrastructure contract.
likely upward pressure as investors reassess valuation relative to AI exposure
Cramer’s endorsement may spark buying interest, but execution risk and near‑term earnings pressure temper the move.
Market effects
AI‑related network traffic could boost demand for edge‑computing and CDN providers.
U.S. tech sector may see modest re‑rating of infrastructure stocks.
Limited; primarily affects U.S. internet‑infrastructure equities.
Counterpoint
The contract may not translate into earnings growth if Akamai’s capex overruns persist.
Key entities
- companyAkamai Technologies
U.S. CDN and edge‑computing provider.
- companyAnthropic
AI startup securing a $11.6 billion multi‑year infrastructure contract with Akamai.
