Akamai (AKAM) Completes Convertible Senior Notes Issuance

Akamai Technologies, Inc. (NASDAQ:AKAM) is one of the 10 Best Stocks in Steve Cohen’s Portfolio.

Akamai (AKAM) Completes Convertible Senior Notes Issuance

On May 22, 2026, Akamai Technologies, Inc. (NASDAQ:AKAM) completed a private placement issuing $3.5 billion in 0.00% Convertible Senior Notes to qualified institutional buyers. The transaction is split evenly into $1.75 billion tranches maturing in 2030 and 2032. The company intends to use $236.6 million of the proceeds to fund convertible note hedge transactions to mitigate future dilution, partially offset by warrant sales. Additionally, Akamai Technologies, Inc. (NASDAQ:AKAM) aimed to spend $350 million to repurchase roughly 2.48 million shares at $141.34 per share, which would optimize the company’s capital structure.

Prior to this, on May 15, 2026, Citi raised the firm’s price target on Akamai Technologies, Inc. (NASDAQ:AKAM) from $110 to $160. The firm’s analyst Fatima Boolani maintained a Neutral rating on the shares. Citi attributed the company’s recent stock rally to a landmark seven-year, $1.8 billion AI infrastructure deal with Anthropic and cited its scarcity value as a reasonably priced AI asset. The adjustment to the price target follows a meeting with Akamai Technologies, Inc. (NASDAQ:AKAM), but the firm believes the market is overlooking the weakness in the company’s margins.

Founded in 1998, Akamai Technologies, Inc. (NASDAQ:AKAM) is a global leader in cybersecurity, cloud computing, and content delivery network (CDN) services. Headquartered in Massachusetts, the company operates Akamai Connected Cloud, a massively distributed edge platform designed to optimize enterprise digital experiences.

While we acknowledge the risk and potential of AKAM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AKAM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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