Tickers in this Article: P, LNKD, YNDX, XLK, ADI, INTC, DELL, CSCO, RENN
Recent tech IPOs like LinkedIn (Nasdaq:LNKD) and Pandora (NYSE:P) have created an investor frenzy around high tech companies, causing many of them to reach sky-high valuations. The buzz around apps, smartphones, cloud computing and tablets has once again lit the tech rocket. However, with visions of Dr. Koop.com still dancing in analysts heads, many are questioning whether we are about to enter a new social media filled tech bubble. Nearly 62% of bankers surveyed by consultant firm BDO, believe the tech industry could be entering into a new dotcom bubble, similar to the 1990s. While there are plenty of concerns with regards to these new IPOs, the other side of tech continues to get cheaper.

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Focusing On the Big Boys
With the attention of most investors placed towards the recent high-flyers, large cap technology firms have been a victim of extreme pessimism. Overall, large technology firms are flushed with cash and currently trading for less than the broad market. Looking at the tech behemoths or those stocks with $5 billion-plus market caps, the sector trades for just a P/E of 14. Backing out the record amount of cash on technology stocks books and that P/E drops to less than 13. This is a significant changing of the guard. Over the last 20 years, the technology sector has traded on average at a 30% premium to the broad market based on earnings. Famed Silicon Valley venture capitalist Marc Andreessen, believes that based on a 30-year cycle that main stream tech stocks are "cheap". And he isn't the only analyst with this assessment. Some of the smartest value investor have also been recently loading up on large cap tech for their funds.

Some analysts are quick to explain that the cheapness of tech comes from the slowing economy. Historically, there have been two periods over the last 40 years, where investors shunned the sector for long stretches. However, technology plays a bigger part in our daily lives than it did in the 1970s. In addition, today's tech behemoths do something that they didn't before - pay dividends.

Adding Some Tech Exposure
Despite the "dotcom 2.0 bubble" talk, mainstream technology firms represent one of the few values in the market place, and shouldn't be affected if Yandex (Nasdaq:YNDX) blows up. For investors, now could be a good time to bet on the big boys of the technology. Adding a fund like the Technology Select Sector SPDR (NYSE:XLK) is an easy way to add the entire sector to a portfolio. However, some of the best values can be had in individual picks.

Boring isn't necessarily a bad thing. Semiconductor firm Analog Devices (NYSE:ADI) makes the chips needed for variety of equipment to run. Sales and profits continue to grow, and the company has reduced its share count by 25% during the last five years. Analog Devices still has plenty of cash on its books and trades for a P/E of 12.6. Shares yield 2.5%. Similarly, chip maker Intel (Nasdaq:INTC) represents a huge bargain at a forward P/E of around 10.

Trading about 45% lower than its 2007 high, Dell (Nasdaq:DELL) makes an interesting value option. Shares of the company trade for roughly what they did in 1998, however the company generates more than five times the sales. The company is also benefiting from increased server sales, as more people take their programs and data to the cloud. Dell can be had for a forward P/E of less than nine.

With its hand in everything from the smart grid to cloud computing, networking giant Cisco (Nasdaq:CSCO) is as cheap as it has ever been, based on a variety of metrics. The company has a huge cash hoard and just instituted a 24-cent dividend.

The Bottom Line
While the recent social media IPOs have caused some investors to wince at the possibility of a new tech bubble, mainline large cap tech is as cheap as it can be. For investors, that could spell a huge opportunity to score some value on the cheap. (So you've finally decided to start investing. But what should you put in your portfolio? Find out here. See How To Pick A Stock.)

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