Bernstein: Software crowdedness rebounds, remaining below long-term historical levels.

Bernstein believes capital inflows are primarily concentrated in application platforms with stable or accelerating revenues, alongside usage-based software driven by expanding AI workloads. The report remains confident in the business durability of select enterprise platforms but still voices concerns over growth and valuation divergences for hot stocks. Its stock-picking framework focuses on operational improvements, AI monetization capabilities, and the disconnect between market sentiment and fundamentals.