By coinnews 
00:00 Speaker A
In video is cut to hold at HSBC this morning off the back of concerns that they have limited pricing power and that’s going to be a hit to earnings. Where do you stand on that argument?
00:10 Stacy Rasgon
They have limited, well, I’m not sure they have limited pricing power. I’m not sure they have I’m not they have I mean they’re running 75% margins and frankly, people are lining up out out the door to buy their products. Um, they probably have more pricing power frankly than anybody else although I would say semiconductors in general do tend to have pricing power again you can look through COVID, just because of the inflationary pressures, um, the average semiconductor ASP today versus say 2019 is up 50%. So I think the industry and by the way people still bought semis. I think the industry in general probably does have better pricing power than a lot of other industries. Like if I was selling t-shirts or shoes or something, I would be more worried, um, about my ability to price the tariffs versus like semiconductors, especially if it’s like a 10% lift, I’m not too worried about that. Um, I think the broader disruption, um, and like I said the the worry about demand destruction at the end unit, um, uh, point is, is I think bigger worries. And I don’t think those are those are isolated to NVIDIA. I think those are those are broad worries across the space.
02:34 Speaker A
I think I’m still sitting here with an iPhone 6, so I might be part of that problem. What do you think? What’s an expectation for what the damage may look like and how excited do you get around where valuations may be going on some of these great long-term theme names?
03:03 Stacy Rasgon
Yeah, I I to be honest, I don’t know like how how big the damage will be again if it was if it was a direct impact you can size that. We’ve done that it’s it’s it’s fine. Um, the indirect impacts and demand research, I I don’t know because you need like, you know, data on price elasticity for gazillion types of end products. Like I I don’t have that data or analysis. I don’t I don’t know exactly how to size the general impact from this. Um, it will again if this continues, you know, and the macro gets worse, it’ll probably be sizable. Like and again not not just semis. Again, I don’t think this is isolated to semis, but the impact will will probably we’ll probably be be big so I I don’t know how to size it though. I wish I did.
04:30 Speaker A
Stacy, thank you so much. Love getting your thoughts. Really appreciate.