AI is a boon for 3 internet traffic cop stocks. Cramer says only 1 is a buy right now
AI agents are driving a surge in web traffic, creating new growth opportunities for internet infrastructure companies Cloudflare, Akamai and Fastly.
TL;DR
- The AI revolution is causing a substantial increase in web traffic, creating opportunities for companies that manage internet infrastructure.
- Cloudflare, Akamai Technologies, and Fastly are key players in managing this digital traffic, making websites faster and more reliable.
- Cloudflare's stock has surged 159% year-to-date, and its CEO noted AI agent traffic has surpassed human traffic.
- Akamai is building data centers closer to users for AI workloads and secured an $11.6 billion commitment from Anthropic.
- Fastly is shifting towards an 'edge cloud' platform to capitalize on AI-driven traffic.
- Jim Cramer recommends buying Akamai stock now due to its valuation and perceived undervaluation of its recent partnership.
- He suggests waiting for a pullback to buy Cloudflare and Fastly due to their current stock prices and valuations.