Chapter 211: Buy it!

"Chairman Su, this is some information about NVIDIA."
NVIDIA. The world's largest graphics card manufacturer.
For a gamer like Su Hao, the significance of this company is self-evident.
After all, the level of graphics card you use directly determines whether you're playing a game or looking at a PowerPoint presentation.
However, he wasn't looking at this information to upgrade his computer.
It was because the company's CEO had specifically requested to fly over to see Fang Huan Shipping.
"Vintex's stock price has now surged to $130, with its market capitalization hovering between $50 billion and $60 billion."
The subordinate analyzed,
"But this is just a flash in the pan. There are already rumors in the industry that TSMC can't deliver the goods, and Vitech's upcoming new generation of flagship cards simply can't be produced."
The solution was simple and straightforward.
All Su Hao needed to do was nod and have Fang Huan Shipping loosen its grip on material shipments to TSMC.
“What if we don’t budge?” Su Hao asked with interest.
“They’ll definitely find another way. Although we’re an absolute giant in the shipping industry, we still have Maersk of Denmark.
They’re very likely to disregard costs and turn to Maersk for cooperation.
No matter how high the transportation costs are, they have to get the product manufactured first.
Especially in this once-in-a-century mining boom, selling one more card means more profit.”
“So, they always have a way out?”
“Yes. It’s just a matter of soaring transportation costs causing significant fluctuations in manufacturing costs, but it’s a solution.”
"So… Mr. Su, why don't we take this opportunity to have a good talk with Nvidia and do them a favor? Perhaps…"
Su Hao knew perfectly well that the one who truly wanted to destroy TSMC wasn't him.
It was Qin Han, chairman of Jiangjin Group, who had specifically come to him seeking help in order to seize the chip foundry market.
But now, it seemed everyone outside believed that he, Su Hao, was the mastermind behind all the chaos.
'How about we invite Qin Han in for a three-way meeting?'
Su Hao considered using this opportunity to force Nvidia to divert some of its orders from TSMC to Jiangjin Group; it seemed like a good option.
'But… it just doesn't feel right!'
His intuition was completely silent at this moment.
Logically, with a major event like Nvidia's soaring stock price, his intuition should have already jumped in, reminding him to jump on the bandwagon and make a quick buck.
But even now, his intuition remained completely unresponsive.
'Could it mean... the stock price is about to fall?'
His intuition should have warned him to short the stock, but it remained utterly silent.
Could it be that his current level of expertise was too high, his capital and profit expectations had expanded to a whole new level, to the point that such paltry profits were no longer worthy of his divine intuition's flick of a finger?
Or perhaps, the information about Viinger was not comprehensive enough.
After all, his intuition never arose out of thin air; it was based on sufficient information for deduction and prediction.
So, he calmed down and began to carefully review the documents, page by page.
Stock price increase, equity structure, products under development...
He read very quickly, almost skimming through them.
However, he didn't find anything particularly noteworthy. Just as he was about to finish flipping through the tedious report—
"...Hmm?"
His gaze suddenly fell upon a corner of the report. It was a list of NVIDIA's competitors.
'AMC?'
The world's second-largest graphics card manufacturer.
This company was a bit peculiar; it not only made graphics cards but also had a CPU business.
But perhaps it was a case of biting off more than it could chew, trying to do both, resulting in failure on both fronts.
Under NVIDIA's spotlight, AMC had been struggling to survive, its stock price even briefly falling below $2 a few weeks ago, with the market widely believing it was on the verge of bankruptcy.
“Oh, AMC,” the subordinate added,
“Three years ago, a new CEO named Lisa Su took over. She implemented many reforms, but to no avail.
Technology, channels, ecosystem—they were completely crushed by Nvidia.
It was only thanks to the Bitcoin boom that the stock price climbed from a low of $2 back to $3.”
AMC's market capitalization hovered between $4 billion and $5 billion. Compared to Nvidia's market capitalization of over $50 billion, it was simply incomparable.
But why…
Su Hao felt his long-dormant intuition suddenly blaze like a bright lighthouse in the darkness, shining directly on this dying AMC!
"What's the company's shareholding structure like?"
"The Saudi sovereign wealth fund holds 10%, making it the largest shareholder.
The remaining shares are all scattered. Some institutions basically sold off their shares when the stock price fell to $2.
You could say that besides that 10%, the company has no major shareholders; 60% of the shares are publicly traded."
In short: This is a worthless company abandoned by all capital.
The CEO, Lisa Sue, is desperately trying to save the company through technological innovation, but to everyone, hoping to turn things around and surpass Nvidia is pure fantasy.
But intuition points her here, like a moth drawn to a flame, relentlessly pursuing it.
"AMC's current situation is just as awkward as Nvidia's. Their chip manufacturing also relies entirely on TSMC.
The only advantage is that Nvidia is too large; switching foundries would be a huge undertaking, requiring massive losses.
AMC, on the other hand, is smaller and more agile; switching production lines would be much faster."
'So… my intuition tells me to buy AMC stock now, wait for it to rise, and then sell?'
Su Hao picked up a pen and tentatively wrote "Buy" next to AMC's name on the report.
However, his intuition barely registered anything.
“AMC has actually been looking for a buyer,” the subordinate continued.
“Like those institutions that run away with the money, the Saudi fund is also eager to get rid of its shares, even at a discount.
They know that without TSMC's chips, AMC can't produce its next-generation products, and if they drag this out, their shares will only become less and less valuable.
Unfortunately, they've been trying to sell for a long time, but no one has taken over.”
“At what price does the Saudi side plan to sell the shares?”
"We'll have to discuss the specifics, but it will definitely be lower than the market price. After all, no one in the market can absorb such a large volume all at once.
Once the negative news of insufficient production capacity is confirmed, the stock price will collapse..."
...I see.
Su Hao took a deep breath, his eyes sharpening like knives.
He crossed out the word "buy" that he had just written.
Then, he picked up his pen and wrote two more words with flowing strokes.
"Acquisition."
As the last stroke of the word "purchase" fell, an invisible force seemed to surge through the pen tip and into the paper.
"Pfft!" A soft sound, and the pen tip had actually pierced a hole in the sturdy A4 paper.
“Several companies had discussed acquisition before, but they all backed out in the end.” The subordinate, completely oblivious to Su Hao’s unease, continued,
“Firstly, there’s the behemoth Viinta looming over them;
Secondly, while the acquisition price isn’t much, that CEO, Lisa Su, is constantly talking about technological innovation, and the subsequent investment is a bottomless pit…”
Su Hao interrupted him.
“This one.”
“…Huh?”
Su Hao looked up and calmly said, “We’ll buy it.”
“…?!”