Akamai’s $1.8 billion AI infrastructure deal underpins Morgan Stanley’s bullish stance despite recent stock declines.
Morgan Stanley maintained its $165 price target for Akamai Technologies (AKAM), reaffirming an Overweight rating as shares trade 48% below the target at $111. The $16.1 billion company has fallen 31% from record highs, but analysts see long-term growth intact amid expansion into AI and cloud infrastructure.
Akamai’s shift into AI workloads was highlighted by a $1.8 billion seven-year contract with a leading frontier model company, its largest deal ever. This follows a $200 million cloud infrastructure agreement earlier in 2024, signaling momentum in high-growth segments beyond its traditional content delivery network.
The note precedes Akamai’s second-quarter earnings, with expectations tempered for near-term performance despite the company’s strategic pivot. Analysts anticipate quieter results than some investors hope for, though the AI-driven growth narrative remains a key focus.