The AI Boom Is Turning This Cable Maker Into a Stock to Watch

Belden is not a chipmaker, but its connectivity products are becoming more relevant as AI data centers expand.

The company posted record second-quarter revenue and orders, helped by strong demand across data center and industrial markets.

The RUCKUS acquisition gives Belden a broader networking platform, though integration risk and competition remain important watch points.

Investors hunting for ways to profit from the artificial intelligence boom typically look to chipmakers, cloud giants, or maybe software firms embedding AI into everything.

But what about the company that makes the cable running between the server racks?

Just ask Belden NYSE: BDC about where this unexpected opportunity lies and how it now has Wall Street’s attention.

Rated a Buy by analysts, this century-old maker of industrial cable and wire has surged in recent weeks and is in the midst of a multibillion-dollar acquisition.

Whether the expansion pays off and Belden can outcompete some larger competitors, this St. Louis-based company might be a less-obvious way to play the AI-fueled buildout.

Belden has spent more than a century supplying the kind of unglamorous infrastructure that keeps factories, hospitals, refineries, and mass transit running.

That story is changing.

Shares are up roughly 38% over the past month, helped by a blowout second-quarter earnings report in late July, and analysts are expecting to see further growth.

The quarter itself was a record.

Revenue came in at $750.2 million, up 11.6% year-over-year (YOY) and ahead of the $746.75 million Wall Street expected.

Net income came in at $68.5 million , up 12.3% from $61 million.

Adjusted earnings per share hit $2.34 , a 24% jump from a year earlier, comfortably beating the $2.02 consensus.

Orders reached a record $836 million, up 19% YOY, pushing the book-to-bill ratio to 1.11, a clear sign demand is building.

Margins told the same story as adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose about 28% to $146 million.

The margin climbed to 19.5% from 17%.

Belden isn't succeeding by building AI models or chips.

It's supplying the behind-the-scenes or under-the-floorboards connectivity that the AI buildout sorely needs.

Belden disclosed roughly $40 million in hyperscaler orders, or those from large-scale cloud computing providers, during the quarter.

That included a $20 million contract with an unnamed Tier 1 hyperscaler for high-density fiber connectivity inside an AI data center.

The segment is still a small slice of Belden’s business today, but it's growing fast.

First-quarter revenue was already up 11% to $696.4 million, with adjusted earnings per share (EPS) up 11% to $1.77.

The full 2025 fiscal year was itself a record, with revenue reaching $2.715 billion, up 10% YOY, with adjusted EPS growing 19% to $7.54.

On July 1, Belden closed a roughly $1.85 billion acquisition from Vistance Networks NASDAQ: VISN of its RUCKUS Networks.

Not only could RUCKUS, which supplies enterprise Wi-Fi, Ethernet switching, and network management platforms, attract an expanded set of enterprise clients, but its high-margin assets could further boost Belden’s gross and EBITDA margins.

Belden already expects the benefits to appear in the current quarter.