Akamai (AKAM) Jumps 11.5% After Strong Q3 and AI Cloud Launch with NVIDIA—Is Growth Accelerating?

Earlier this month, Akamai Technologies announced strong third-quarter results, reporting US$1.05 billion in sales and a significant increase in net income, while also launching the Akamai Inference Cloud, an AI platform developed in partnership with NVIDIA to bring real-time edge AI capabilities closer to end users and devices. This rapid commercial adoption and technological advance into AI-powered services highlights a shift in Akamai’s business, positioning the company to address growing demand for distributed edge computing and intelligent security solutions. Now, we’ll look at what the launch of Akamai Inference Cloud means for Akamai’s long-term investment narrative and future growth potential.

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Akamai Technologies Investment Narrative Recap

To own Akamai Technologies shares today, you need to believe that the company’s accelerating pivot to edge-based, AI-powered cloud and security services can offset headwinds in its traditional delivery business and support long-term growth. The launch of Akamai Inference Cloud represents a meaningful short-term catalyst, fueling optimism for near-term revenue acceleration, while customer concentration remains the top risk as revenue realization is still tied closely to a few large contracts. This news does not fundamentally change the importance of landing and scaling key compute and security deals.

Among the latest announcements, Akamai’s launch of the Inference Cloud stands out, as it brings advanced, real-time AI capabilities to the edge and is already attracting production-ready customer interest across sectors like live video, recommendation engines, and smart digital agents. This rapid adoption could reinforce Akamai’s transition away from legacy delivery segments, strengthening the near-term outlook built around cloud infrastructure and security momentum.

However, despite the company’s recent gains, investors should be aware that revenue is still highly dependent on a small number of significant contracts and, if those ramp slower than anticipated...

Read the full narrative on Akamai Technologies (it's free!)

Akamai Technologies is projected to reach $4.9 billion in revenue and $765.1 million in earnings by 2028. This outlook is based on a 6.1% annual revenue growth rate and reflects an increase in earnings of $340.5 million from the current $424.6 million.

Uncover how Akamai Technologies' forecasts yield a $95.20 fair value, a 14% upside to its current price.

Exploring Other PerspectivesAKAM Community Fair Values as at Nov 2025

Simply Wall St Community members estimate Akamai’s fair value from US$66 to US$132, reflecting a broad spectrum of views from five independent analyses. The company’s current growth depends on customers migrating workloads to its new edge and AI platforms, highlighting why opinions about future returns can vary so widely.

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Explore 5 other fair value estimates on Akamai Technologies - why the stock might be worth 21% less than the current price!

Build Your Own Akamai Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

A great starting point for your Akamai Technologies research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free Akamai Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Akamai Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include AKAM.

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