Akamai Technologies (AKAM) shares are ripping higher on Friday morning after the distributed cloud and security provider announced multiple significant enterprise agreements. As investors cheered AKAM, it soared past its key moving averages (MAs), indicating the bullish momentum could sustain in the near term.
The announcements come as Akamai stock has been in a sharp downtrend, currently trading about 27% below its year-to-date high in early June.
Anthropic Deal Drives Akamai Stock Higher
Investors are primarily bidding up AKAM shares after management signed a multi-year cloud infrastructure agreement with artificial intelligence (AI) powerhouse Anthropic.
Under the landmark $11.6 billion deal, Akamai’s largest to date, it will provide distributed cloud infrastructure and software to power Anthropic’s scaling CPU workloads. Crucially, the contract features an option to expand by another $9 billion, cementing AKAM as a key player in enterprise AI infrastructure.
Akamai is extending gains because the agreement effectively positions it for high-margin software and cloud revenue growth over the next decade.
Note that AKAM’s relative strength index (RSI) sits in the mid-50s as of writing, indicating intense buying pressure.
What Else Is Proving a Tailwind for AKAM Shares
Separately, Akamai announced key hardware supply chain agreements on Friday.
The company entered into a three-year Master Products and Services Agreement (MPSA) with Lenovo Global Technologies Ireland to procure hardware, software, and services, paired with a core seven-year Statement of Work (SOW).
Additionally, Akamai shares are rallying on an expanded partnership with contract manufacturer Jabil (JBL) through a new build request for customized server hardware production and repair support.
Investors are treating these hardware deals as crucial infrastructure scaffolding, ensuring Akamai Technologies has the customized server capacity required to execute its multi-billion-dollar compute commitments smoothly.
Wall Street’s View on Akamai Technologies
Wall Street analysts remain fully convinced that AKAM stock is poised for an exciting comeback through the remainder of 2026.
According to Barchart, the consensus rating on Akamai Technologies sits at “Moderate Buy” as of writing, with the mean price target of about $155 indicating potential upside of nearly 35% from here.
On the date of publication, Wajeeh Khan 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.