Cybersecurity and cloud computing firm Akamai reported first-quarter earnings on Thursday and saw its cloud infrastructure business grow 40% year-on-year.
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Akamai’s
stock jumped in early trading Friday after it announced a $1.8 billion deal with an AI company and posted first-quarter earnings that were in line with estimates.
The stock was last up 22.3% in premarket trading, and shares are up 37% over the past 12 months.
A “leading frontier model provider” has committed to $1.8 billion over seven years for cloud infrastructure services, Akamai’s CEO Tom Leighton said in the press release Thursday. He did not name the provider.
Cloud growth has been a widely watched metric for the company as rivals such as Google and Microsoft ramp up the pressure.
In a Tuesday note, the bank maintained its buy rating on the cloud computing stock and raised its price target.
The company expanded on its $7 billion lease agreement for artificial intelligence data centers with CoreWeave.
Bank of America sees shares of DigitalOcean surging more than 30% from current levels.
Alibaba reported a 34% year-on-year rise in cloud computing revenue to 39.8 billion yuan.
Amazon Web Services now accounts for over 20% of its parent company's total revenue.
