Stock Market Midday: AI Lifts Markets as Akamai Soars on Anthropic Deal

The broader stock market climbed on September 25, 2026, as technology strength helped major indexes absorb rising Treasury yields. The Dow Jones Industrial Average rose 0.35 percent to 51,531, the Nasdaq Composite climbed 0.11 percent to 26,969, and the S&P 500 gained 0.12 percent to 7,713, though other data cited an S&P 500 level of 7,742.18 with a day’s range between 7,693.08 and 7,749.30. Technology and utilities led the gaining sectors, while energy and communication stocks fell the most. Meanwhile, gold dropped 0.07 percent to $4,275.45 and the 10-year Treasury yield climbed 5 basis points to 5.21 percent. Amid analyst predictions that 10-year yields could reach 6 percent if bond turbulence continues, consumer sentiment slipped in September as high living costs ate into budgets. Yet the corporate catalyst centered on Akamai’s multi-year computing pact, which sent shares soaring more than 20 percent in after-hours and premarket sessions, touching roughly $129.60 per share.

Anthropic Computing Contract and Financial Terms

Under the terms of the deal, Anthropic will pay Akamai $11.6 billion across a seven-year span to utilize software and CPU capabilities sourced from the distributed AI infrastructure of Akamai Cloud.

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This represents the largest deal in Akamai’s history. The contract builds upon an earlier $1.8 billion computing agreement struck earlier in the year, alongside more than $2.8 billion in other multi-year cloud infrastructure commitments secured by Akamai over the same period.

Beyond the core commitment, the arrangement includes an option for both firms to expand the deal by another $9 billion, which would push the potential total value to roughly $20 billion. To power the collaboration, Anthropic will utilize central processing units—general-purpose chips deployed to run AI software—housed within Akamai’s distributed network.

To cement the partnership, Akamai issued a warrant to Anthropic allowing the purchase of Series B preferred shares at $111.33 each, which convert into 7.7 million shares of common stock representing up to about 5 percent of Akamai’s outstanding common stock. Chief Executive Tom Leighton called the agreement a serious step that brings the two companies closer together, marking the first time Akamai has agreed to issue a warrant as part of a cloud deal with a customer. About 2 percent of that stock vests alongside the initial $11.6 billion commitment, while the remainder vests incrementally if Anthropic expands its spending by up to $9 billion, with every additional $3 billion purchased vesting about 1 percent more stock.

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Capital Spending and Revenue Projections

Supporting a contract of this magnitude requires heavy upfront investment. Akamai expects to spend approximately $5.5 billion in capital expenditures solely for this agreement, with $1.7 billion scheduled for 2026 alone—a figure more than six times what the company spent on capital expenditures throughout all of 2025. Hardware such as networking gear, chips, and servers will account for the bulk of these outlays, with the firm anticipating a roughly $1.7 billion surge in 2026 capital expenditures driven by memory and other supply chain elements.

The massive outlay has raised questions regarding whether the cloud provider will need outside financing. Chief Financial Officer Edward McGowan pointed to the company’s $4.6 billion in cash reserves alongside $1 billion in available bank lending commitments.

Revenue from the contract will ramp up gradually. Akamai anticipates generating between $150 million and $300 million from the partnership next year, while expecting no impact on its 2026 revenue guidance. By 2028, the company projects an annual run rate of about $1.7 billion from the deal, and cloud revenue could soon pass sales from the company’s other segments. JPMorgan analysts noted that the additional $9 billion expansion option follows a path of low resistance toward being exercised due to Anthropic’s accelerating computing needs.

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Wall Street Reaction and Cloud Infrastructure Growth

Wall Street responded to the announcement.

Morgan Stanley analysts estimate operating margins on the Anthropic contract will land near 30 percent, pointing out that Akamai’s reliance on CPUs rather than power-heavy GPUs gives it a structural advantage. The analysts characterized this approach as a dynamic that is not well-understood by the market when it comes to running AI workloads.

The new contract arrives as Akamai’s broader cloud business experiences rapid expansion. Cloud Infrastructure Services revenue grew 39 percent year over year to $99.3 million in the second quarter.