TD Cowen raises Akamai stock price target on compute scarcity

TD Cowen has raised its price target on Akamai Technologies (NASDAQ:AKAM) to $149 from $140, while maintaining a Hold rating on the shares. The firm views a recently announced contract win as evidence that compute scarcity remains a defining characteristic of the current AI infrastructure cycle. Akamai has reported strong second-quarter results, surpassing Wall Street expectations with adjusted earnings of $1.59 per share on revenue of $1.1 billion, driven by a significant 39% year-over-year increase in cloud infrastructure services revenue.

Despite concerns around the durability of the model, the firm remains cautious on the long-term sustainability of Akamai’s cloud infrastructure services business model through a full cycle, believing much of today’s demand environment is being driven by an acute shortage of available compute rather than durable infrastructure differentiation.

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