• In recent days, Akamai Technologies reported strong past Q3 2025 results, highlighting accelerating Cloud Infrastructure Services growth, resilient security revenue, and guidance for full-year 2025 adjusted EPS of US$6.93–US$7.13.
• The company also unveiled its NVIDIA-powered Akamai Inference Cloud for AI at the edge, underscoring how AI-focused infrastructure is becoming a central pillar of its business mix.
• We’ll now examine how the launch of Akamai’s NVIDIA-powered Inference Cloud for AI at the edge may reshape its investment narrative.

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Akamai Technologies Investment Narrative Recap

To own Akamai today, you have to believe its pivot toward security, cloud infrastructure, and AI at the edge can more than offset a challenged CDN core and rising investment needs. The Q3 2025 beat and higher full year adjusted EPS guidance support that thesis, but they do not eliminate near term risks around heavy capex, customer concentration in compute, and potential margin pressure as new AI workloads scale.

The launch of the NVIDIA powered Akamai Inference Cloud for AI at the edge is the clearest near term catalyst linked to this earnings move, because it ties Akamai’s global network directly to the AI workloads driving demand for low latency compute. How quickly this new offering translates into diversified, recurring CIS and security revenue will be a key test of whether recent optimism proves durable.

Yet beneath the excitement around AI and Inference Cloud, investors should still be aware of the risk that rising capex and partner driven compute sales could pressure margins over time...

Akamai Technologies' narrative projects $4.9 billion revenue and $765.1 million earnings by 2028.

Uncover how Akamai Technologies' forecasts yield a $101.16 fair value, a 9% downside to its current price.

Exploring Other Perspectives

Some of the lowest estimate analysts were assuming Akamai would grow revenue only about 5 percent annually and earn roughly US$495.4 million by 2028, which is far more cautious than the AI fueled acceleration implied by the Inference Cloud launch and recent results. This more pessimistic view highlights how much opinions can differ and why it is worth weighing several scenarios before deciding what you think Akamai is really worth.

Explore 7 other fair value estimates on Akamai Technologies - why the stock might be worth less than half 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 1 key reward 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.