Akamai Lands $1.8B Cloud Deal, CIS Revenue Rises 40%
Akamai secured a $1.8 billion seven-year cloud infrastructure agreement, driving a 40% year-over-year surge in its Cloud Infrastructure Services segment. Morgan Stanley raised its price target to $165 and Bank of America to $175, fueling a 7.74% share gain to a new 52-week high.
1. Major Cloud Infrastructure Deal
Akamai finalized a seven-year cloud infrastructure services agreement valued at $1.8 billion, marking its largest contract in the segment. The deal underscores rising demand for scalable cloud and AI infrastructure solutions among enterprise customers.
2. Analyst Upgrades Drive Optimism
Following the contract announcement and robust segment growth, Morgan Stanley lifted its price target from $120 to $165, while Bank of America upgraded its rating to Buy with a $175 target. These moves reflect strong confidence in Akamai’s transition to high-growth cloud and AI services.
3. Share Performance and Outlook
Shares jumped 7.74% to $161.14, touching a 52-week high of $165.45 during the session. The rally highlights investor enthusiasm for Akamai’s strategic pivot, even as broader tech stocks contend with 3.8% inflationary pressures.