- Anthropic secures $1.8bn cloud deal with Akamai for AI expansion
May 11, 2026
Anthropic has entered into an agreement valued at $1.8bn with Akamai Technologies to secure additional cloud computing capacity for its AI platforms, sources familiar with the matter told Bloomberg News.
Akamai confirmed last week that it had signed a seven-year cloud services deal with a provider it described as a “leading frontier model provider” but did not disclose the company’s name.
Both Anthropic and Akamai declined to comment beyond the information already made public.
The demand for Anthropic’s AI products, including its Claude software suite, has risen sharply, prompting the company to seek increased computing resources from multiple providers.
In addition to Akamai, Anthropic has arranged for cloud services and hardware from Alphabet’s Google and SpaceX.
Last week, Anthropic’s CEO Dario Amodei said that the business had experienced significant growth in revenue and system usage during the first quarter of the year. This increase has led to an accelerated search for new infrastructure.
Anthropic and SpaceX recently finalised a deal for access to the Colossus 1 data centre in Memphis, Tennessee. The facility contains more than 220,000 Nvidia processors and provides 300MW of computing power.
This agreement is intended to ease pressure on Anthropic’s AI operations and follows the company’s announcement that it will increase usage limits and request volumes for its Claude Code and Claude Opus products.
The move also aligns with SpaceX’s strategy to attract major clients as it seeks additional investment for its AI and data centre initiatives.
Akamai, known primarily for its content delivery and cybersecurity services, has expanded its offering into cloud computing and has identified its contract with Anthropic as the largest in its history.
As part of its strategy, Anthropic continues to explore avenues for developing large-scale computing capacity and is reported to have discussed cooperation with SpaceX on future orbital data centres.
Earlier this month, Anthropic partnered with Hellman & Friedman, Goldman Sachs, and Blackstone to launch a new enterprise AI services company. The independent firm will help businesses implement and integrate Claude, drawing on Anthropic’s engineering expertise and partner resources as part of its operating team.
"Anthropic secures $1.8bn cloud deal with Akamai for AI expansion" was originally created and published by Verdict, a GlobalData owned brand.
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- Cathie Wood Picks 5 Bubble-Era Stocks That Are Riding The AI Wave: 'Blasts From The Past' She Says
May 11, 2026 · benzinga.com
The AI trade is no longer just about the usual mega-cap winners. According to Cathie Wood, some of the biggest surprise beneficiaries of the artificial intelligence boom are companies many investors had long written off as relics of earlier tech cycles.
- Company News for May 11, 2026
May 11, 2026
The Trade Desk Inc.’s (TTD) shares fell 1.8% after reporting first-quarter 2026 adjusted earnings of $0.28 per share, missing the Zacks Consensus Estimate of $0.28 per share.
Shares of Dropbox Inc. (DBX) jumped 15% after posting first-quarter 2026 adjusted earnings of $0.76 per share, outpacing the Zacks Consensus Estimate of $0.71 per share.
Shares of Akamai Technologies Inc. (AKAM) soared 26.6% after the company reported first-quarter 2026 revenues of $1,073.61 million, surpassing the Zacks Consensus Estimate of $1,073.14 million.
MercadoLibre Inc.’s (MELI) shares plunged 12.7% after the company posted first-quarter 2026 adjusted earnings of $8.23 per share, missing the Zacks Consensus Estimate of $8.78 per share.
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- First Look: Aramco profit jump, Nvidia-Corning deal, GM fined
May 11, 2026 · gurufocus.com
Stock News Discount chains gain share: Budget-conscious consumers are flocking to discounters, with Aldi adding 17 million U.S. customers in 2025 and planning 1
- Akamai Technologies Cements Itself As An AI Beneficiary
May 10, 2026 · seekingalpha.com
Akamai Technologies, Inc. reported Q1 results nearly in line with Wall Street expectations. Security and cloud infrastructure showed good momentum, but pressure in the delivery segment continued to weigh on AKAM's growth and margins. A new $1.8 billion AI cloud infrastructure deal is major news for AKAM, cementing the company as an AI beneficiary.
- A Look At Akamai Technologies (AKAM) Valuation After Landmark US$1.8b AI Cloud Deal And Revenue Beat
May 10, 2026
Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge.
Akamai Technologies (AKAM) has drawn fresh attention after reporting stronger than expected revenue growth, alongside a landmark US$1.8 billion, seven year cloud deal with a major AI company. This development is reshaping how some investors view the stock.
See our latest analysis for Akamai Technologies.
The stock has been volatile around the news, with a 13.31% 7 day share price return and a 22.73% 90 day share price return. The 1 year total shareholder return sits at 36.58%, suggesting momentum has recently picked up from a relatively modest 5.09% 5 year total shareholder return base.
If this AI driven story has your attention, it could be worth widening your search to other AI infrastructure opportunities using our 40 AI infrastructure stocks
With the share price already up strongly and Akamai trading slightly above the average analyst price target, the key question now is whether that 13.7% estimated intrinsic discount signals a genuine opportunity or if future growth is already priced in.
Most Popular Narrative: 5.1% Overvalued
With Akamai trading at $116.69 against a most-followed fair value estimate of $110.98, the current price sits slightly above that narrative and leans on a relatively high required return of 10.16%.
Rampant growth in data consumption, driven by AI-powered applications, video, and real-time use cases, is creating strong demand for Akamai's cloud infrastructure and edge compute offerings. This is illustrated by accelerating CIS (Cloud Infrastructure Services) ARR (annual recurring revenue), with 40 to 45% growth targeted for year-end 2025, pointing to robust forward revenue acceleration as large signed deals start to contribute.
Read the complete narrative.
Want to see what sits behind that AI and security optimism, the long term revenue glide path, and the profit margin reset that still supports this fair value story.
Result: Fair Value of $110.98 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, investors still need to watch for higher AI related capex pressuring margins, as well as the reliance on a few large compute contracts that could add earnings volatility.
Find out about the key risks to this Akamai Technologies narrative.
Another View on Valuation
The SWS DCF model paints a different picture, with Akamai at $116.69 compared with an estimated future cash flow value of $135.28, implying the stock is trading at a discount. When one model flags 5.1% overvalued and another sees upside, which signal matters more to you?
Story Continues
Look into how the SWS DCF model arrives at its fair value.AKAM Discounted Cash Flow as at May 2026
Next Steps
If this mix of potential upside and clear risk has you thinking, it is worth moving quickly, reviewing the numbers yourself, and deciding where you stand using our 2 key rewards and 2 important warning signs
Looking for more investment ideas?
If Akamai has sharpened your focus on quality, do not stop here. Broaden your watchlist now so you are not late to the next opportunity.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Review & Preview: Still Going Strong
May 8, 2026
REVIEW PREVIEW NEWSLETTER Broken Record. We’re running out of superlatives for this market. The S&P 500 and Nasdaq Composite closed Friday at new highs once again. It’s their 15 and 11th record closes of the year, respectively.
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- Akamai Technologies (AKAM) Reports Q1 Earnings: What Key Metrics Have to Say
May 8, 2026
Akamai Technologies (AKAM) reported $1.07 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 5.8%. EPS of $1.61 for the same period compares to $1.70 a year ago.
The reported revenue represents a surprise of +0.04% over the Zacks Consensus Estimate of $1.07 billion. With the consensus EPS estimate being $1.61, the EPS surprise was +0.08%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Akamai Technologies performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- International: $530.46 million versus the two-analyst average estimate of $524.33 million. The reported number represents a year-over-year change of +9.1%. Revenue- United States: $543.15 million versus $550.19 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +2.7% change. Revenue- Security: $589.79 million versus $578.21 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +11.1% change.
View all Key Company Metrics for Akamai Technologies here>>>
Shares of Akamai Technologies have returned +6.5% over the past month versus the Zacks S&P 500 composite's +11% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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- Stock Market Today, May 8: Rackspace Surges on AMD AI Cloud Agreement
May 8, 2026
Rackspace Technology(NASDAQ:RXT), a provider of end-to-end multi-cloud technology services, closed at $5.49, up 55.97%. Shares surged after the company announced an AI cloud infrastructure partnership with AMD focused on governed enterprise AI for regulated customers, and investors are watching how this collaboration could drive future demand.
The company’s trading volume reached 150.9 million shares, which is about 389% above compared with its three-month average of 30.6 million shares. Rackspace Technology went public in 2020 and has fallen 66% since its IPO.
How the markets moved today
The broader markets advanced Friday, with the S&P 500(SNPINDEX:^GSPC) rising 0.84% to 7,398.93 and the Nasdaq Composite(NASDAQINDEX:^IXIC) gaining 1.71% to finish at 26,247.08. Among software - infrastructure peers, Akamai Technologies (NASDAQ:AKAM) closed at $147.71, up 26.58%, while Cloudflare (NYSE:NET) finished at $196.13, down 23.62%, reflecting sharply different reactions to growth and restructuring news.
What this means for investors
Rackspace Technology shares surged after the company signed a memorandum of understanding with AMD to develop a governed Enterprise AI Cloud infrastructure for regulated customers. The agreement is still a framework rather than a confirmed revenue contract, but it gives Rackspace a more specific AI offering at a time when healthcare, finance, government, and sovereign-cloud customers are seeking infrastructure that meets security and compliance requirements.
The move also came alongside improved first-quarter results, with revenue rising 2% to $678 million and the company returning to profitability, posting about $8 million in net income. Rack Space’s Public Cloud revenue grew to $443 million while Private Cloud revenue declined to $235 million. The next market-moving signal will be whether Rackspace can turn the AMD framework into customer workloads that generate recurring managed-cloud revenue within regulated industries.
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Story Continues
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Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cloudflare. The Motley Fool recommends Akamai Technologies. The Motley Fool has a disclosure policy.
Stock Market Today, May 8: Rackspace Surges on AMD AI Cloud Agreement was originally published by The Motley Fool
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- Stocks Finish Higher on Solid Earnings and a Resilient Labor Market
May 8, 2026
The S&P 500 Index ($SPX) (SPY) on Friday closed up +0.84%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.02%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +2.35%. June E-mini S&P futures (ESM26) rose +0.79%, and June E-mini Nasdaq futures (NQM26) rose +2.37%.
Stock indexes settled higher on Friday, with the S&P 500 and Nasdaq 100 posting new record highs. Chipmaker and AI-infrastructure stocks led the overall market higher on Friday, offsetting concerns about the Iran war. Stronger-than-expected corporate earnings are pushing stocks higher. Weakness in software stocks on Friday weighed on the Dow Jones Industrial Average.Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stock indexes also found support today on signs of resiliency in the US labor market after April nonfarm payrolls rose more than expected and March nonfarm payrolls were revised upward. Stocks rallied on Friday despite a larger-than-expected decline in US consumer sentiment to a record low.
US Apr nonfarm payrolls rose by +115,000, stronger than expectations of +65,000, and Mar nonfarm payrolls were revised upward to +185,000 from the previously reported +178,000. The Apr unemployment rate was unchanged at 4.3%, right on expectations.
US Apr average hourly earnings rose +0.2% m/m and +3.6% y/y, weaker than expectations of +0.3% m/m and +3.8% y/y.
The University of Michigan’s US May consumer sentiment index fell -1.6 to a record low of 48.2 (data from 1978), weaker than expectations of 49.5.
The University of Michigan US May 1-year inflation expectations rate unexpectedly eased to +4.5% from +4.7% in Apr, weaker than expectations of an increase to 4.8%. The May 5-10 year inflation expectations rate unexpectedly eased to +3.4%, weaker than expectations of no change at +3.5%.
In the latest developments in the Middle East, Iran's semi-official Tasnim news agency said Iran seized an oil tanker on Friday in the Strait of Hormuz for "attempting to disrupt oil exports and the interests of the Iranian nation." Also, US forces targeted missile and drone launch sites and other military assets in Iran that were responsible for attacking three US Navy destroyers transiting the Strait of Hormuz. The US is awaiting a response from Iran on a proposed deal to reopen the strait, and President Trump has threatened intense strikes if Iran refuses the deal.
WTI crude oil prices (CLM26) moved higher on Friday amid a report that Iran seized an oil tanker in the Strait of Hormuz for “violations.” Crude also has support from a report that said the US is looking to restart military operations as soon as next week to guide commercial ships through the Strait of Hormuz with naval and air support. The strait remains essentially closed, as about a fifth of the world’s oil and liquefied natural gas transits through the strait. Goldman Sachs estimates that the current disruption has drawn down nearly 500 million bbl from global crude stockpiles, with the drawdown potentially reaching 1 billion bbl by June.
The markets are discounting a 6% chance of a -25 bp FOMC rate cut at the next FOMC meeting on June 16-17.
Earnings reports thus far in this reporting season have been supportive of stocks. As of Friday, 83% of the 446 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
Overseas stock markets settled lower on Friday. The Euro Stoxx 50 closed down -1.02%. China's Shanghai Composite fell from a 2-month high and closed unchanged. Japan's Nikkei Stock Average closed down by -0.19%.
Interest Rates
June 10-year T-notes (ZNM6) on Friday closed up +7.5 ticks. The 10-year T-note yield fell -2.1 bp to 4.365%. T-notes moved higher on Friday amid an increase in safe-haven demand after Iran seized an oil tanker in the Strait of Hormuz and US forces attacked missile and drone launch sites in Iran that were responsible for attacking three US Navy destroyers transiting the Strait of Hormuz. T-notes added to their gains on Friday after US consumer sentiment fell more than expected to a record low, and inflation expectations eased.
Friday’s US unemployment report was mixed for T-notes. Weaker-than-expected April hourly earnings suggested slack wage pressures and were supportive of T-notes. However, gains in T-notes were limited after April nonfarm payrolls rose more than expected.
European government bond yields are lower today. The 10-year German Bund yield rose +0.2 bp to 3.005%. The 10-year UK gilt yield fell to a 2-week low of 4.864% and finished down -3.6 bp to 4.912%.
German Mar industrial production unexpectedly fell by -0.7% m/m, weaker than expectations of a +0.4% m/m increase.
German trade news was better than expected, with Mar exports rising +0.5% m/m versus expectations of -1.5% m/m. Also, Mar imports rose +5.1% m/m, stronger than expectations of +0.5% m/m and the biggest increase in 2.75 years.
ECB Vice President Luis de Guindos said the most important determinant for interest rates at the ECB's June meeting will be "whether Hormuz is reopened or not."
ECB Executive Board member Isabel Schnabel said, "If the energy-price shock broadens, monetary policy will need to tighten to contain the risk of second-round effects threatening medium-term price stability."
ECB Governing Council member and Bundesbank President Joachim Nagel said the ECB is "highly vigilant" about rising inflation risks from the Iran war and will act as needed to prevent higher energy costs from spilling over into broader prices.
Swaps are discounting a 79% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.
US Stock Movers
Chipmakers and AI-infrastructure stocks moved higher on Friday to lift the overall market. Sandisk (SNDK) closed up more than +15% to lead gainers in the Nasdaq 100, and Micron Technology (MU) closed up more than +14%. Also, Intel (INTC) closed up more than +13%, and Advanced Micro Devices (AMD) closed up more than +10%. In addition, Qualcomm (QCOM) closed up more than +8%, and Applied Materials (AMAT), KLA Corp (KLAC), and Marvell Technology (MRVL) closed up more than +5%. Finally, ASML Holding NV (ASML) closed up more than +4%, and Lam Research (LRCX), Broadcom (AVGO), and Western Digital (WDC) closed up more than +2%.
Mining stocks moved higher on Friday as gold, silver, and copper prices rallied. Anglogold Ashanti (AU) closed up more than +7%, and Southern Copper (SCCO) and Barrick Mining (B) closed up more than +3%. Also, Coeur Mining (CDE), Hecla Mining (HL), and Newmont Corp (NEM) closed up more than +2%, and Freeport McMoRan (FCX) closed up more than +1%.
Software stocks were on the defensive on Friday, limiting gains in the broader market. Salesforce (CRM), Autodesk (ADSK), Workday (WDAY), ServiceNow (NOW), and Intuit (INTU) closed down more than -2%. Also, Adobe (ADBE) and Microsoft (MSFT) closed down more than -1%.
Fluence Energy (FLNC) closed up more than +27% after Roth Capital Partners upgraded the stock to buy from neutral with a price target of $26.
Akamai Technologies (AKAM) closed up more than +26% to lead gainers in the S&P 500 after raising its full-year revenue forecast to $4.45 billion to $4.55 billion, the midpoint above the consensus of $4.47 billion, and announcing that an AI model provider had committed $1.8 billion over seven years for its Cloud Infrastructure Services.
Monster Beverage (MNST) closed up more than +13% after reporting Q1 net sales of $2.35 billion, better than the consensus of $2.15 billion.
Corpay (CPAY) closed up more than +12% after reporting Q1 revenue of $1.26 billion, above the consensus of $1.21 billion, and raising its full-year revenue estimate to $5.25 billion to $5.33 billion from a previous estimate of %5.22 billion to $5.32 billion.
Iren Ltd (IREN) closed up more than +8% after announcing that it signed a five-year $3.4 billion AI Cloud contract with Nvidia.
Block (XYZ) closed up more than +7% after reporting a Q1 adjusted EPS of 85 cents, stronger than the consensus of 67 cents, and raising its full-year profit forecast to $12.33 billion from a previous estimate of $12.20 billion, above the consensus of $12.15 billion.
Wendy’s (WEN) closed up more than +5% after reporting Q1 revenue of $540.6 million, stronger than the consensus of $517.7.
Cloudflare (NET) closed down more than -23% after it forecast Q2 revenue of $664 million to $665 million, below the consensus of $666.1 million.
HubSpot (HUBS) closed down more than -18% after forecasting Q2 revenue of $897 million to $898 million, weaker than the consensus of $899.4 million.
Mettler-Toledo International (MTD) closed down more than -14% to lead losers in the S&P 500 after forecasting Q2 adjusted EPS of $10.70 to $10.84, below the consensus of $10.94.
MercadoLibre (MELI) closed down more than -12% to lead losers in the Nasdaq 100 after reporting Q1 EPS of $8.23, weaker than the consensus of $8.51.
CoreWeave (CRWV) closed down more than -11% after reporting a Q1 loss per share of -$1.40, wider than the consensus of -$1.20 pe share.
Expedia Group (EXPE) closed down more than -9% after forecasting Q2 gross bookings of $32.5 billion to $33.1 billion, the midpoint below the consensus of $33.0 billion.
Fidelity National Information (FIS) closed down more than -7% after forecasting Q2 adjusted EPS of $1.45 to $1.49, the midpoint below the consensus of $1.49.
Earnings Reports(5/11/2026)
AECOM (ACM), Amentum Holdings Inc (AMTM), AST SpaceMobile Inc (ASTS), Certara Inc (CERT), Circle Internet Group Inc (CRCL), Constellation Energy Corp (CEG), Figure Technology Solutions Inc (FIGR), Fox Corp (FOXA), Halozyme Therapeutics Inc (HALO), Mosaic Co/The (MOS), Ovintiv Inc (OVV), Simon Property Group Inc (SPG), STERIS PLC (STE), ZoomInfo Technologies Inc (GTM).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
