Fundstrat co-founder Tom Lee said the first phase of the AI trade was concentrated in upstream areas such as semiconductors, memory and infrastructure, where related names had already seen major gains and then moved into a pullback. According to comments cited by DecodeMarkets from Lee’s Thursday appearance on Macro Minute, market attention is now rotating toward downstream segments, with software, the application layer and Ether drawing more interest.
Lee said Ethereum has already gone through the expected sharp cooldown, but its fundamental narrative continues to strengthen. He pointed to stablecoins, tokenization of assets, institutional adoption and the prospect of AI agents eventually completing transactions on-chain as areas supporting that case. He also said capital may be shifting away from building infrastructure and toward owning the underlying rails where the next wave of activity could happen, which in his view suggests the market is still in an early stage.
Lee added that ETH has started to show price action, but positioning has not kept up, with most portfolios still lacking exposure to the asset.
Fundstrat co-founder Tom Lee said the first stage of the AI trade was centered on upstream segments including semiconductors, memory and infrastructure, and that those names have already posted significant gains before entering a pullback, according to comments from Thursday’s Macro Minute cited by DecodeMarkets.
Lee said the market’s focus is now moving downstream. Software, the application layer and ETH are starting to attract more attention.
Ethereum narrative keeps building, Lee says
Lee said Ethereum has already gone through the sharp cooldown he had expected, but the asset’s fundamental narrative continues to strengthen. He tied that view to stablecoins, tokenization of assets, institutional adoption and the potential for AI agents to carry out transactions on-chain in the future.
He also said capital may be moving away from funding infrastructure buildout and toward holding the underlying rails where the next wave of activity is likely to take place, adding that the market remains in an early stage.
Most portfolios still have no ETH allocation
Lee added that ETH has started to show some price performance, but positioning has not followed. In his view, most portfolios still do not hold ETH.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
