How crowded are hardware and chip stocks into Q4?

Investing.com -- Bernstein analysts said their analysis shows concerns about crowded AI positioning in hardware and chip stocks "have merit," even after the trade has partially unwound. Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month's list » Analysts led by Daniel Zhu found communications equipment, semiconductors, and computers and peripherals are all relatively crowded subsectors. That stands in contrast to longer-term history, in which networking and hardware "have often screened as out-of-favor sectors," the analysts said. Communications equipment is the most crowded subsector by a significant margin, with a Z-score of 0.