AI has pulled huge amounts of capital into a small group of tech giants, but the recent US$2.3t drop in the “Magnificent Seven” shows how quickly sentiment can shift when investors question the payoff from heavy AI spending. At the same time, suppliers like Micron, Intel, Marvell, AMD, and Sandisk are attracting attention as key links in the AI infrastructure chain, supported by tight supply and strong demand. This article looks at three technology value stocks exposed to this news theme to help you decide whether they deserve a closer look or a place on your watchlist.

Belden (BDC)

Overview: Belden is a century-old US company that supplies the cables, connectivity hardware, and network systems that move data around factories, office buildings, stadiums, and data centers, including for 5G, fiber to the home, and building automation. It also provides software and services that help customers digitize and automate operations across sectors such as industrial automation, energy, transport, and broadband.

Market Cap: US$4.6b

Belden sits in the slipstream of AI and digital infrastructure spending, supplying the high performance connectivity, fiber, and OT/IT networking gear that AI data centers and “physical AI” projects depend on. The company trades at a discount to many Electronic sector peers, and analyst price targets currently sit well above the prevailing share price. At the same time, high debt tied to acquisitions such as RUCKUS Networks, mixed views on margins and returns, and intense competition in commoditized cabling mean the story is not risk free. For investors who think the real opportunity may lie with AI infrastructure suppliers rather than headline AI stocks, Belden presents a set of trade offs that may merit closer consideration.

Belden’s AI infrastructure role, discounted valuation, and higher debt tell a more complicated story than a simple “cables and connectors” label suggests, and the real tension sits inside the 5 key rewards and 1 important warning sign

Dell Technologies (DELL)

Overview: Dell Technologies is a global hardware and services company that builds and supports everything from laptops and workstations to data center storage, AI optimized servers, and networking gear for businesses, governments, schools, and consumers.

Operations: Dell generates most of its revenue from its Infrastructure Solutions Group at about US$79.5b and its Client Solutions Group at about US$53.1b, with a smaller US$1.4b contribution from corporate and other activities.

Market Cap: US$267.9b

Investors looking for exposure to AI infrastructure rather than just headline AI stocks may find Dell Technologies worth a closer look, as the company supplies AI servers, storage, and networking systems that sit behind many current AI projects and has reported very large AI server backlogs and strong order momentum. Earnings growth has been strong, profitability has improved, and analysts see continued revenue and earnings growth, yet the stock trades at value type multiples compared with some AI peers. The trade off is clear: high leverage, margin pressure from lower margin AI hardware and traditional PCs, balance sheet risk with liabilities exceeding assets, and recent insider selling. How those competing forces play out is central to the investment case for Dell.

AI server momentum at Dell Technologies is grabbing headlines, but the real story may lie in how its high leverage, PC exposure, and AI hardware margins fit together in the 3 key rewards and 3 important warning signs

Amdocs (DOX)

Overview: Amdocs is a US headquartered software company that runs core billing, customer service, and network systems for telecom, media, and digital service providers, now layering in GenAI tools to help those clients automate operations and personalize customer interactions.

Operations: Amdocs generates about US$4.6b in annual revenue, almost entirely from providing software products and services, with around US$3.0b coming from North America and the balance from Europe and the rest of the world.

Market Cap: US$5.5b

For investors who like the AI theme but prefer steadier, service driven cash flows, Amdocs offers an interesting twist: it sits behind the scenes powering telco IT, with around 65% of revenue coming from managed services that are described as highly recurring. It trades at value type multiples with a P/E near 10x and a dividend yield around 4.5%. At the same time, the company is leaning into GenAI by partnering with NVIDIA and others, pruning low margin legacy activities, and running proof of concepts for AI driven network and customer experience projects. It is also managing end market headwinds, modest revenue growth guidance, and higher funding risk due to reliance on external borrowing. How that mix of recurring income, AI optionality, and slower top line growth fits together is where the real interest in Amdocs lies.

Recurring cash flows at Amdocs and its GenAI push could be masking a much bigger story for telecom software. Get the full context in the analysis report for Amdocs

The three technology value stocks in this article are just a starting point. The full Technology Value Stocks screener uncovers 14 more companies that share similar financial traits and equally compelling narratives inside the Technology Value Stocks screener.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.