Akamai’s (AKAM) Latest Move Has Jim Cramer Thinking Differently
Jim Cramer discussed Akamai Technologies (AKAM) on Mad Money, highlighting its AI infrastructure plans and a $11.6B agreement with Anthropic. Akamai's Cloud Infrastructure Services revenue grew 39% YoY to $99M, while total revenue increased 5% to $1.1B. The company expects significant customer interest and business growth in 2027, despite near-term earnings pressure from infrastructure investments.
How this was made
The 30-second read
Why it matters
The $11.6 billion Anthropic deal is sizable for Akamai and could reshape its revenue mix, but the immediate earnings impact is negative.
Market read
The partnership may attract investors seeking exposure to edge AI, but short‑term earnings pressure tempers enthusiasm.
What to watch
Execution risk of building the inference cloud and the timing of revenue recognition.
Background
Akamai is a long‑standing content‑delivery network provider expanding into AI inference at the edge.
Ticker impact
Akamai announced an $11.6 billion Anthropic partnership and $5.5 billion capex plan, which the article recaps and Cramer recommends as a buying opportunity.
potential modest upside as investors price in future AI‑inference revenue, offset by short‑term cash‑flow concerns.
Cramer’s bullish call contrasts with recent share decline and high short interest; the net effect is uncertain but could lift the stock if the partnership delivers expected revenue.
Market effects
Highlights growing demand for edge AI infrastructure, may benefit other edge‑computing providers.
Limited to U.S. tech sector; no broader regional effect.
Signals continued shift toward distributed AI compute, relevant to global cloud and AI hardware markets.
Counterpoint
High capex and short‑term earnings hit could pressure the stock despite the partnership.
Key entities
- companyAkamai Technologies, Inc.
US‑listed CDN and edge‑computing provider (ticker AKAM).
- companyAnthropic
AI startup partnering with Akamai for inference workloads.
