Akamai Technologies, Inc.

NASDAQ Global Select
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Bullish +75

5 Underperforming Data Center Stocks to Buy According to Short Sellers

AI-generated analysis

📈 Oppenheimer reiterated an Outperform rating on Akamai (AKAM) with a $180 price target, implying 59% upside from current levels.

🤖 Analysts believe the market undervalues Akamai's cloud computing opportunity as AI inference starts to dominate AI workloads.

⚡ Capacity growth projections show AKAM data center capacity rising from 17MW at end of 2025 to up to 100MW by end of 2028.

📊 Wall Street consensus median upside is estimated at 45% based on estimates from 29 different analysts.

📉 AKAM stock recently underperformed with a one-month decline of -28.8%, creating a potential catch-up opportunity.

☁️ Akamai has successfully pivoted to decentralized cloud computing solutions amid increasing AI-induced demand.

🏢 The company offers three distinct offerings: security solutions, compute solutions, and delivery solutions.

📈 Peer Applied Digital (APLD) sees a 125% upside with Craig-Hallum reiterating a Buy rating without a price target.

🚀 CoreWeave (CRWV) analysts see up to 269% upside, with BNP Paribas highlighting strong AI infrastructure market positioning.

⛏️ IREN (IREN) stands out for high profit margins among neocloud firms due to its vertically integrated business model.

🤝 Super Micro Computer (SMCI) announced strategic partnerships with StorMagic and Odine to strengthen AI infrastructure markets.

🌍 SMCI aims to expand in faster-growing markets including AI infrastructure, cloud computing, and enterprise deployments.

Bullish Signals
  • Oppenheimer assigns a $180 price target on Akamai (AKAM), representing a 59% upside from current levels.
  • Analysts project AKAM data center capacity to grow from 17MW in late 2025 to as high as 100MW by the end of 2028.
  • Wall Street consensus indicates a healthy 45% median upside for Akamai based on estimates from 29 analysts.
  • Akamai has successfully pivoted to decentralized cloud computing solutions, capitalizing on increasing AI-induced demand.
  • Applied Digital (APLD) carries a median price target of $74.5, suggesting an additional 125% upside from current levels.
  • CoreWeave (CRWV) has a highest analyst price target of $302, representing a compelling 269% upside potential.
  • IREN Limited (IREN) currently holds the highest profit margins among neocloud firms covered in recent reports.
  • Super Micro Computer (SMCI) strengthened its position with strategic partnerships to expand AI infrastructure and virtualization solutions.
Full Analysis
The article highlights Akamai Technologies (NASDAQ: AKAM) as a top underperforming data center stock to buy, citing a recent Oppenheimer update that reiterated an Outperform rating with a $180 price target. This target implies a 59% upside from current levels, driven by the belief that the market undervalues Akamai's cloud computing opportunities as AI inference workloads dominate. Oppenheimer notes that while Wall Street consensus suggests a 45% median upside, their multi-stage DCF model indicates even greater potential. The firm projects Akamai's data center capacity to grow significantly from 17MW at the end of 2025 to as high as 100MW by the end of 2028, reflecting strong growth in cloud/AI inferencing. The piece contextualizes Akamai within a broader list of five underperforming data center stocks, including Applied Digital (APLD), CoreWeave (CRWV), IREN (IREN), and Super Micro Computer (SMCI). It details various analyst upgrades, price targets, and strategic partnerships for these peers, such as SMCI's new alliances in virtualization and AI infrastructure deployment. Akamai is described as a global leader in cloud computing and cybersecurity that has successfully pivoted to decentralized solutions amidst rising AI demand. The article concludes by suggesting that as the market better understands Akamai's growth trajectory within the AI sector, the stock could rally higher, making it an attractive play for investors seeking upside.