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AKAM vs. ANET: Which AI Infrastructure Stock is the Better Buy Now?
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Key Takeaways
ANET is expanding its AI networking business, with management expecting $3.6 billion in AI revenues in 2026.
AKAM's cloud infrastructure commitments exceed $2.8 billion, but rising costs are pressuring profitability.
ANET's 2026 sales and EPS estimates point to stronger growth, while Akamai faces declining EPS expectations.
Akamai Technologies (AKAM - Free Report) and Arista Networks (ANET - Free Report) are capitalizing on the expansion of AI infrastructure, but their businesses address different requirements of the growing ecosystem. Akamai combines content delivery, cybersecurity and cloud computing services through its globally distributed platform. Its expanding cloud infrastructure business is targeting AI inference, analytics and other workloads that can benefit from processing resources closer to end users, helping improve responsiveness and manage infrastructure costs.
Arista Networks operates more directly in the data center networking segment of AI infrastructure. The company supplies high-speed Ethernet switches, routers and programmable networking software that support cloud computing and large-scale data center operations. With a robust portfolio and strong industry expertise, both companies aim to benefit from the growing AI infrastructure space.
The Case for AKAM
Akamai's growing cloud infrastructure business is emerging as a key driver of future growth. The company is positioning its distributed computing platform to support AI inference, analytics, storage and other enterprise workloads. Akamai secured more than $2.8 billion in multiyear cloud infrastructure commitments during the first half of 2026, including a four-year agreement worth more than $600 million with a U.S.-based technology company for robotics development. Management expects Cloud Infrastructure Services revenue to grow at least 50% in 2026.
extensive global network offers another avenue for expansion as AI applications increasingly require responsive computing services closer to end users. Its infrastructure spans more than 4,300 edge points of presence across over 130 countries and nearly 700 cities. This footprint enables the company to pursue workloads that could benefit from lower latency and improved cost efficiency compared with centralized processing. Akamai's security business remains an important source of growth as enterprises expand AI adoption and seek stronger protection for applications, APIs and digital infrastructure.
Competition from Cloudflare (NET - Free Report) and other established cloud and security providers could put pressure on pricing, customer acquisition and differentiation across overlapping markets. Capturing AI-related demand requires substantial investment in computing capacity, GPUs and supporting infrastructure. These expenses are already weighing on profitability. Akamai's non-GAAP operating margin declined five percentage points year over year to 25% in the second quarter of 2026, while non-GAAP earnings per share fell 8%.
The company anticipated third-quarter capital expenditures of $475 million to $525 million and indicated that up to $500 million in additional spending could be required to replenish and expand GPU capacity. Its ability to earn adequate returns on these investments will be crucial to sustaining profitable growth.
The Case for ANET
Arista Networks is benefiting from rising investment in AI data centers, where high-speed networking is essential for connecting computing resources and moving data efficiently across AI clusters. The company's Etherlink switches are gaining traction among customers building Ethernet-based AI infrastructure. In the second quarter of 2026, Arista reported more than 100 cumulative AI fabric customers. Management expects AI-related revenue to reach at least $3.6 billion in 2026.
Its Extensible Operating System supports network automation and management, while technologies such as Smart System Upgrade, Multipath Reliable Connection and Segment Routing over IPv6 (SRv6) are designed to improve network reliability and traffic efficiency for AI workloads. The company is also expanding its high-capacity switching portfolio and liquid-cooled networking solutions to address evolving data center requirements. These leading-edge innovations are boosting Arista’s commercial prospects in the expanding AI networking space.
Beyond AI data centers, Arista is broadening its addressable market through enterprise networking, campus connectivity, routing and automation software. Its integrated networking architecture supports deployments across multiple environments, allowing the company to pursue opportunities beyond traditional cloud infrastructure customers.
In the first six months of 2026, operating cash flow rose to $2.78 billion even as receivables and inventories consumed cash, while deferred revenue provided a substantial offset. This supports product development and supply expansion, but elevated inventory and $9.7 billion of purchase commitments could pressure conversion if AI deployments slow or working-capital needs rise.
How Do Zacks Estimates Compare for ANET & AKAM?
The Zacks Consensus Estimate for AKAM’s 2026 sales implies year-over-year growth of 6.5%, while that of EPS is projected to decline 7% year over year. The EPS estimates for 2026 and 2027 have decreased over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Arista’s 2026 sales implies year-over-year growth of 40.3%, while that of EPS is projected to grow 38.26% year over year. The EPS estimates for 2026 and 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of ANET & AKAM
Over the past year, Arista has gained 27.1% compared with AKAM’s growth of 26.5%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, Arista’s shares currently trade at 37.82 forward earnings, higher than 13.68 for Akamai.
Image Source: Zacks Investment Research
AKAM vs ANET: Which is a Better Pick?
Akamai carries a Zacks Rank #4 (Sell) while Arista carries a Zacks Rank #3 (Hold).
Both Akamai and Arista are taking several initiatives to capitalize on the expanding AI infrastructure market. However, Akamai is affected by weakness in its Delivery business due to pricing dynamics and changing traffic patterns. The ongoing decline in traditional content delivery continues to offset gains from Security and Cloud Infrastructure Services. Macro headwinds and geopolitical unrest are also impacting AKAM’s prospects.
Strong demand for AI networking, expanding adoption of its Ethernet-based AI fabric solutions and growth across cloud and enterprise networking are supporting Arista’s business outlook. ANET stands out as the preferred choice based on the current Zacks Rank comparison.
View the Zacks #1 Rank List
Image: Bigstock
AKAM vs. ANET: Which AI Infrastructure Stock is the Better Buy Now?
Key Takeaways
Akamai Technologies (AKAM - Free Report) and Arista Networks (ANET - Free Report) are capitalizing on the expansion of AI infrastructure, but their businesses address different requirements of the growing ecosystem. Akamai combines content delivery, cybersecurity and cloud computing services through its globally distributed platform. Its expanding cloud infrastructure business is targeting AI inference, analytics and other workloads that can benefit from processing resources closer to end users, helping improve responsiveness and manage infrastructure costs.
Arista Networks operates more directly in the data center networking segment of AI infrastructure. The company supplies high-speed Ethernet switches, routers and programmable networking software that support cloud computing and large-scale data center operations. With a robust portfolio and strong industry expertise, both companies aim to benefit from the growing AI infrastructure space.
The Case for AKAM
Akamai's growing cloud infrastructure business is emerging as a key driver of future growth. The company is positioning its distributed computing platform to support AI inference, analytics, storage and other enterprise workloads. Akamai secured more than $2.8 billion in multiyear cloud infrastructure commitments during the first half of 2026, including a four-year agreement worth more than $600 million with a U.S.-based technology company for robotics development. Management expects Cloud Infrastructure Services revenue to grow at least 50% in 2026.
extensive global network offers another avenue for expansion as AI applications increasingly require responsive computing services closer to end users. Its infrastructure spans more than 4,300 edge points of presence across over 130 countries and nearly 700 cities. This footprint enables the company to pursue workloads that could benefit from lower latency and improved cost efficiency compared with centralized processing. Akamai's security business remains an important source of growth as enterprises expand AI adoption and seek stronger protection for applications, APIs and digital infrastructure.
Competition from Cloudflare (NET - Free Report) and other established cloud and security providers could put pressure on pricing, customer acquisition and differentiation across overlapping markets. Capturing AI-related demand requires substantial investment in computing capacity, GPUs and supporting infrastructure. These expenses are already weighing on profitability. Akamai's non-GAAP operating margin declined five percentage points year over year to 25% in the second quarter of 2026, while non-GAAP earnings per share fell 8%.
The company anticipated third-quarter capital expenditures of $475 million to $525 million and indicated that up to $500 million in additional spending could be required to replenish and expand GPU capacity. Its ability to earn adequate returns on these investments will be crucial to sustaining profitable growth.
The Case for ANET
Arista Networks is benefiting from rising investment in AI data centers, where high-speed networking is essential for connecting computing resources and moving data efficiently across AI clusters. The company's Etherlink switches are gaining traction among customers building Ethernet-based AI infrastructure. In the second quarter of 2026, Arista reported more than 100 cumulative AI fabric customers. Management expects AI-related revenue to reach at least $3.6 billion in 2026.
Its Extensible Operating System supports network automation and management, while technologies such as Smart System Upgrade, Multipath Reliable Connection and Segment Routing over IPv6 (SRv6) are designed to improve network reliability and traffic efficiency for AI workloads. The company is also expanding its high-capacity switching portfolio and liquid-cooled networking solutions to address evolving data center requirements. These leading-edge innovations are boosting Arista’s commercial prospects in the expanding AI networking space.
Beyond AI data centers, Arista is broadening its addressable market through enterprise networking, campus connectivity, routing and automation software. Its integrated networking architecture supports deployments across multiple environments, allowing the company to pursue opportunities beyond traditional cloud infrastructure customers.
In the first six months of 2026, operating cash flow rose to $2.78 billion even as receivables and inventories consumed cash, while deferred revenue provided a substantial offset. This supports product development and supply expansion, but elevated inventory and $9.7 billion of purchase commitments could pressure conversion if AI deployments slow or working-capital needs rise.
How Do Zacks Estimates Compare for ANET & AKAM?
The Zacks Consensus Estimate for AKAM’s 2026 sales implies year-over-year growth of 6.5%, while that of EPS is projected to decline 7% year over year. The EPS estimates for 2026 and 2027 have decreased over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Arista’s 2026 sales implies year-over-year growth of 40.3%, while that of EPS is projected to grow 38.26% year over year. The EPS estimates for 2026 and 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of ANET & AKAM
Over the past year, Arista has gained 27.1% compared with AKAM’s growth of 26.5%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, Arista’s shares currently trade at 37.82 forward earnings, higher than 13.68 for Akamai.
Image Source: Zacks Investment Research
AKAM vs ANET: Which is a Better Pick?
Akamai carries a Zacks Rank #4 (Sell) while Arista carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both Akamai and Arista are taking several initiatives to capitalize on the expanding AI infrastructure market. However, Akamai is affected by weakness in its Delivery business due to pricing dynamics and changing traffic patterns. The ongoing decline in traditional content delivery continues to offset gains from Security and Cloud Infrastructure Services. Macro headwinds and geopolitical unrest are also impacting AKAM’s prospects.
Strong demand for AI networking, expanding adoption of its Ethernet-based AI fabric solutions and growth across cloud and enterprise networking are supporting Arista’s business outlook. ANET stands out as the preferred choice based on the current Zacks Rank comparison.