Memory stocks have surged into trillion-dollar valuations this year, with Micron now trading at levels some describe as hard to believe.

The rally has coincided with historic artificial intelligence infrastructure spending across the industry. Yet, by the valuation framework analysts on this beat are using, the stock still trades below prior-cycle peak multiples for the memory group.

The shortage is not simply a demand story. It runs deeper, tied to a structural shift inside the memory industry itself that most coverage of AI winners leaves out, and it’s changing who holds pricing power in a way that could outlast the current rally.

CJ Muse, senior managing director and semiconductor analyst at Cantor Fitzgerald, breaks down what is actually supporting these valuations, and where he stands in a debate that splits even his own peers.

Views expressed in this video are opinions of the host and the guest, and do not necessarily reflect the views of The Epoch Times.