3 Great Value AI Stocks (Hint: 1 is a Household Name; the Other 2 You've Never Heard Of)

Artificial intelligence stocks have taken off in 2026 as their fundamentals get stronger, but it's getting harder to find good deals. Even so, Google owner Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) still looks like a smart pick for those who believe in AI stocks. Brady Corporation (NYSE: BRC), which focuses on printing, labeling, and product identification, and Belden (NYSE: BDC), which makes data and networking products, also offer solid value. With both companies increasing their involvement in AI data center spending, they look like attractive buys.

Alphabet's valuation

The IT giant's capital spending is soaring as it builds out the AI infrastructure necessary to service future AI growth. Consequently, its annual free cash flow (FCF) is declining. What will its FCF look like after the big ramp-up in capital spending is over?

According to PwC, total spending on data centers will begin to decline significantly in the 2030, and by the end of the year, digital network spending (inference using AI) will exceed data center infrastructure spending (building and training AI).

As such, investors should look for Alphabet's capital spending to moderate and fall as a share of revenue over time, while FCF increases as a share of revenue. That's what the Wall Street consensus is calling for, according to data from S&P Global Market Intelligence.

Data source: S&P Global Market Intelligence. Capex is capital expenditures.

If Wall Street's predictions are correct, Alphabet could reach steady 30% FCF margins and just over $1 trillion in revenue by the 2030s. That would mean about $333 billion in FCF. Using a cautious FCF multiple of 20, Alphabet's value could reach $6.7 trillion in five years, up from $4.66 trillion today.

Brady Corporation

How can a printing, labeling, and product ID company be an AI play? The answer lies in the fact that data center-related growth is disproportionately contributing to its growth.

It's critical for data centers to correctly label their infrastructure to ensure operational functionality and reduce downtime. Brady's data center-related revenue comes from its wire identification products, and CEO Russell Shaller recently disclosed that the products account for 20% of its Americas and Asia revenue and 13% of its Europe and Australia revenue in its third quarter of 2026.

But here's the thing: Wire identification products grew 19% and 13% in the two regional segments, respectively. Together, the figures significantly outpace the overall company's 13.8% growth in the quarter and will account for a much larger share of its overall sales in the coming years.

In addition, Brady has a long-term growth opportunity from its forthcoming acquisition of Honeywell's Productivity Solutions and Services (PSS) business.

It's an exciting deal as it combines PSS leadership in mobile and handheld scanning devices with Brady's printing and labeling expertise. In addition, Brady can probably extract better value from PSS, given that Honeywell's management has been focused on its core businesses of aerospace, automation, and materials as it continues its breakup.

Brady will start integrating PSS in fiscal 2027, and Wall Street analysts expect $6.09 in earnings per share in 2027, putting it at 14.4 times expected 2027 earnings. That's a good value for a company with data center earnings drivers and potential from the PSS acquisition.

Belden

Remember what I said about inference spending being higher than data center spending in the 2030s? The good news is Belden's connectivity products (including cables, connectors, switches, racks, and enclosures), a key point if you're worried about buying into a data center capital-spending play at a high valuation and walking into a spending decline in the 2030s.

The reality is that not only will Belden see growth from the massive ramp-up in data center build-out to 2030, but it will also benefit from solid growth in inference spending thereafter. Moreover, it trades at a significant discount to peers such as TE Connectivity and Amphenol, reflecting their greater exposure to data center spending.

BDC PE Ratio (Forward) data by YCharts

However, Belden's exposure is fast-growing, up double digits in its last quarter , and the $1.85 billion acquisition of RUCKUS Networks, which specializes in enterprise networking, will increase its exposure to inference spending as customers build on-site server rooms.

Pure-play AI infrastructure companies are no longer cheap, but Brady and Belden's exposure and valuations make them attractive to value investors seeking AI upside as well.

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amphenol, and Brady. The Motley Fool has a disclosure policy.