Tom Lee says investors are shifting to Ethereum

• Fundstrat's Tom Lee says investors are moving money from AI stocks into Ethereum.
• He believes Ethereum is benefiting as enthusiasm for memory chip makers cools.
• Lee expects Ethereum to gain from growing interest in tokenisation and stablecoins.

Fundstrat co-founder Tom Lee said investors are rotating money into Ethereum (CRYPTO:ETH) as demand for artificial intelligence chip stocks begins to slow.

Lee said some investors are taking profits from memory chip companies and moving into Ethereum, which he believes offers stronger upside in the current market.

“There’s a rotation taking place from memory chips into Ethereum,” Lee said.

Lee said Ethereum could benefit from the growing use of stablecoins, tokenised assets and blockchain-based financial services, which continue to attract institutional interest.

Ethereum traded higher following the recent rally, while Lee said the shift reflects changing investor preferences rather than weakening confidence in artificial intelligence.

Institutional interest in Ethereum has grown this year as companies expand blockchain projects and investors look beyond Bitcoin (CRYPTO:BTC) for new opportunities.

At the time of reporting, Ethereum price was $1,919.04.