CITIC Securities' research report highlights that, since the third quarter, the U.S. stock software sector has demonstrated somewhat lackluster performance, with application software standing out as particularly underperforming. However, third-quarter reports suggest a stabilizing demand environment for the sector, accompanied by further improvements in corporate performance and an increasing proportion of guidance surpassing expectations. It is projected that the combined policy measures of 'interest rate reductions + expansive fiscal policies' will stimulate a resurgence in software spending among European and U.S. companies. Simultaneously, following a period of preparation and testing that commenced in the fourth quarter of 2024, the commercial benefits of integrating AI with software are expected to become increasingly apparent by 2026. At present, CITIC Securities maintains a positive outlook on the mid-term investment potential within the U.S. stock software sector. It advises investors to focus on application software that has achieved stability and is rebounding from its lows, as well as the consistently high-growth areas of information security (platform-centric) and foundational software (geared towards data management).