Jim Cramer does not hand out compliments lightly during the lightning round of his show.
So when he called one stock terrific this week, investors paid attention.
The company he named has been public for 28 years, and it built its name speeding up websites.
That is starting to change, and the shift is the real reason the endorsement matters.
What Jim Cramer said about Akamai stock
During the lightning round on CNBC’s Mad Money, Cramer gave a firm endorsement to Akamai Technologies (AKAM), calling the stock terrific, CNBC reported.
Cramer hosts Mad Money and ran a hedge fund before moving to television, so his lightning calls sway many retail investors.
What makes Akamai interesting is the business behind the call.
How Akamai makes money and where its growth now comes from
Akamai started in 1998 by speeding up websites through a content delivery network that stores web content close to users, so pages load faster.
Co-founder Tom Leighton, an MIT mathematician who has been CEO since 2013, has moved the company toward higher-margin work in cybersecurity and cloud services.
Security is now Akamai’s largest business.
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Its newer source of growth is cloud infrastructure, where Akamai rents out computing capacity for AI.
It recently teamed up with Nvidia to run AI inference across more than 4,400 edge locations, according to an Akamai press release.
The AI deals that changed Akamai’s outlook
The clearest sign of the shift is the money the company has already committed.
Akamai reported in its second-quarter results that it has signed more than $2.8 billion in multi-year cloud deals in 2026.
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That includes a $1.8 billion, seven-year contract with Anthropic, Bloomberg reported.
It also has a $600 million, four-year deal with a U.S. robotics company.
These deals give the business years of visible AI revenue.
What Akamai’s second quarter told investors
Akamai’s second-quarter report beat expectations, even as profit fell from a year earlier due to heavy AI spending.
Shares rose about 12% after the release, according to Investing.com.
Here’s Akamai’s second quarter at a glance:
- Revenue of $1.1 billion, up 5% from a year earlier
- Security revenue of $604 million, up 10%
- Cloud infrastructure revenue of $99 million, up 39%
- Adjusted earnings of $1.59 a share, down 8%
The older delivery business keeps shrinking, so growth now depends on the AI and security segments.
The spending and the risks investors should weigh
Akamai is investing heavily, and that comes with a cost.
The company’s management expects capital spending to be near 40% of revenue this year and paused buybacks to fund the expansion.
That affects near term profit.
Some analysts are also cautious about the stock.
Citi cut its price target to $122 and kept a Neutral rating.
How Akamai stock stacks up, and what still needs to happen
Akamai is up about 30% in 2026, which is roughly double the S&P 500’s gain over the same stretch.
At Citi’s 2026 Global TMT Conference, Leighton said the cloud unit should move from mid-single-digit to low-teens growth next year, Investing.com reported.
What bulls need to see next
- The $2.8 billion in cloud deals turning into revenue, which the company expects to pick up in the fourth quarter
- Margins steadying as new capacity fills up
- Security sales holding double-digit growth
The stock trades near $111 at about 40 times earnings, so much of the optimism may already be priced in.
The bottom line on Akamai for investors
Cramer’s call brings fresh attention. However, the bull case depends on whether the AI and security businesses can outgrow its fading delivery business.
Akamai also has to do it fast enough to justify the spending.
The multi-year deals offer real visibility, but the heavy costs and full valuation mean patience matters.
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