Atkore, Belden, Flex: AI Data Center Suppliers See Margin Shifts
Tariffs and AI capex reshape margins for Atkore, Belden, and Flex as investors reassess infrastructure plays.
Key points
- Atkore's $2.1 billion Electrical segment benefits from tariffs on imported steel, reducing foreign competition and supporting market share gains.
- Belden's $4.3 billion market cap supports recent multi-year awards in hyperscale data centers, driven by demand for connectivity and cooling hardware.
- Flex's $7.2 billion Cloud and Power Infrastructure division is being isolated to remove the conglomerate discount and highlight AI-specific growth.
Atkore, Belden, and Flex are gaining investor focus as AI data center construction drives demand for power distribution and connectivity hardware. These companies serve as critical infrastructure providers, with their financial performance directly tied to the pace of hyperscale buildouts and evolving trade policies.
According to Yahoo Finance, higher-for-longer interest rates have not slowed big tech capital expenditure, creating a sustained need for physical infrastructure. This environment is reshaping valuation metrics for these three firms, which rely on tangible hardware sales rather than software services.
Atkore captures share via tariff barriers
Atkore manufactures electrical conduit and cable management systems, generating approximately $2.1 billion in revenue from its Electrical segment and $836 million from Safety & Infrastructure. The company’s market capitalization stands at roughly $3.2 billion. High tariffs on imported steel and PVC have reduced foreign competition, allowing Atkore to recapture market share in domestically sourced steel conduit.
Belden secures long-term data center contracts
Belden supplies copper and fiber cabling, racks, and cooling gear, with a market cap of approximately $4.3 billion. The company recently secured multi-year, high-value awards in hyperscale data center applications and automotive manufacturing. These contracts reflect rising demand from digital transformation projects, supporting sustained organic revenue growth as Belden positions itself for expanding enterprise infrastructure needs.
Flex isolates high-growth AI infrastructure unit
Flex, with a market cap of $40.1 billion, generates $7.2 billion from Cloud and Power Infrastructure, $11.6 billion from Integrated Technology Solutions, and $10.5 billion from Regulated Manufacturing Solutions. Management is isolating its AI infrastructure engine, which includes liquid cooling and critical power systems, to eliminate the conglomerate discount that has historically suppressed valuation. This strategic split aims to highlight the growth potential of its high-power server farm components.
