Bernstein: After the outperformance of software stocks, Japanese AI hardware valuations have declined, and the window for deployment is opening.

Smart Finance APP reports that Bernstein has given a positive assessment of Japan's IT hardware and electronics sector: its fundamentals remain strong, and the market's sentiment towards AI is overly pessimistic. Over the past quarter, software and IT service stocks have risen by about 30%. AI-related stocks have come under valuation pressure due to overly high expectations, but during the same period, overall FY26 earnings forecasts have been revised upwards by 2% to 11%. The valuation pullback has actually created a buying opportunity.