Although Lu Ming asked Qi Wei to lead a delegation to conduct research on AMD and Silicon Valley in China, he actually knew AMD very well.
In the past many years, including until now, ADM has always been the second-largest company in the industry because of inherent shortcomings.
The two founders of AMD and Intel both came from the same company, Fairchild Semiconductor.
Both founders had worked for this company, and both had a glimpse of the unprecedented boom in semiconductors in the future, so they both resigned decisively and ran out to start their own businesses. The difference between the two companies lies in the fact that these two founders
People from completely different backgrounds.
The founder of AMD worked in the market at Fairchild Semiconductor, so he did not have in-depth exposure to semiconductor technology. This resulted in AMD's technical strength being very low from the beginning.
On the other hand, the founder of Intel was born with real technology, so this resulted in AMD being unable to compete with Intel in terms of early technology. This also resulted in the early AMD having to devote itself to Intel and become Intel's second supplier.
Accumulate own technology and gradually expand production capacity.
But even this status quo could not last long. By the 1980s, the rise of personal computers made competition in the semiconductor industry increasingly fierce. Intel was already among the world's top players in semiconductors at that time.
And if this trend continues, Intel can become the world's semiconductor giant with its own technology. Out of concern that AMD will steal its technology, Intel unilaterally tore up its cooperation with AMD.
AMD was naturally very angry about this. At that time, it helped Intel win a large order from IBM, but then it was dumped by this "scumbag".
So AMD angrily sued this "scumbag", and the two sides fought in court. Intel eventually lost the lawsuit, but compared to the world's number one in the future, the small amount of compensation for losing the lawsuit was really nothing to Intel.
AMD, which was dumped by Intel, also missed the golden age of personal computer development. It could only watch from the sidelines as Intel advanced all the way and continued to devour the global market. It once became Intel's "tool company" to deal with antitrust sanctions. It was miserable.
batch of.
But AMD is not willing to become a tool company, so it has been trying its best to survive.
Especially after Su Zifeng took charge of AMD, he started the tool company's real counterattack.
After several mistakes in Intel's decision-making and product architecture, Intel decisively came out to share the big cake of the processor market. Although it relied on its price advantage to win part of the market share, the backwardness of technology is an indisputable fact. The research and development of technology
It also requires the investment of huge resources. For a small AMD company, this means that there must be no decision-making mistakes.
After all, Intel is still as strong as in the past in the processor market, and it can even be said that AMD is just an RBQ that has been toyed with and ravaged at will.
After five years of hard work under the leadership of Su Zifeng, the Ryzen series of processors finally launched this year began to emerge.
It is also from now on that more and more people are saying "AMD, YES" in the market.
This has also been fully reflected in AMD's stock price. In just less than a year and a half, the stock price has risen from a low of $1.61 last year to a high of $15.55 at the end of February this year, a cumulative increase of +865%.
In fact, in the past year, AMD has been very grateful to Tiansheng Capital and Lu Ming. Of course, it is limited to spiritual gratitude and nothing else.
Because AMD was at a low point at that time, the stock price fell to 1.61 US dollars, and it was almost abandoned. However, when everyone in the capital market was not optimistic about AMD at that time, Lu Ming spent 86.5 million US dollars to buy AMD.
Bought 39 million shares of AMD and have held it ever since.
This allowed AMD management to see that the company had not been abandoned by the market. At that time, AMD's total market value was less than US$1.6 billion. Lu Ming spent US$86.5 million to buy the company's stock and was determined to go long. This undoubtedly gave
This gave AMD management huge confidence.
Tiansheng QDIE bought AMD's stock. Although the money did not flow into AMD's account, it meant that the market was optimistic about capital, which meant that it was really short of funds. AMD could still raise funds from the market.
, there will be capital to buy it, this is the key point.
The meeting was still going on, and Qi Wei, who was present at the meeting, said: "I don't know if the increase in AMD holdings can reach 15%. After all, the United States is very wary of us being Chinese-owned entities involved in the high-tech industry."
Lu Ming said: "15% is a bit low. No, our increase in holdings does not threaten AMD's control. It is just a long-term strategic financial investment, and we do not interfere in operations. At the same time, the identity of the Chinese investors in the increase in holdings this time is only small.
First, LP institutions on Wall Street account for the majority, so taking 20 to 25% is not a big problem, but no matter what, if the Securities and Exchange Commission of the United States does not come forward to stop it, we will buy like crazy."
This time, Tiansheng Capital plans to invest another US$3 billion to 3.5 billion in AMD. It is not in a hurry about the timing of intervention. AMD's current stock price will fluctuate for eight or nine months in the future, with two huge comebacks.
end.
One time was at the end of the year, when Sichuan University unilaterally provoked a technology war, and the other time was in April next year, with various supply cuts and strong market pessimism. If AMD loses the huge consumer market in Greater China, it will indeed be a problem.
A major blow.
The market also chose to vote with its feet, driving AMD's stock price back to below $10 both times.
At this moment, Lu Ming made a decision that surprised everyone. He looked at Qi Wei and said: "After the meeting, you sell the AMD stocks held by the company one after another, and then switch to short selling!"
Not only others were confused by what he said, Qi Wei was also confused, "Chairman, what are you doing... I couldn't wrap my head around it for a while."
Who was saying "AMD, YES" just now?
Going short on the backhand?
Lu Ming smiled and said: "Technical adjustments should be made technically, with a 30% amplitude fluctuation. Make as much profit as possible now. If you raise your cards in the future, you will not have the opportunity to go back and forth to take all the bulls and the shorts."
If you don't hold more than 5% of the shares now, you can jump sideways repeatedly. When you really start to go long, if you hold more than 5% of the shares, you can't buy in the opposite direction within half a year of selling.
Reverse selling is not allowed within the period.
This greatly limits Lu Ming's arbitrage actions, and also means that AMD cannot carry out long-short arbitrage actions due to two huge fluctuations, when AMD will be cut in half in September next year and the global black swan plunge of 30% in 2O20.
Although small funds can jump horizontally repeatedly, no matter how happy they are, they can't compare to the absolute benefits of big funds that can be achieved in one wave.
Lu Ming doesn't care about the so-called rate of return. What he cares about is the absolute return. The absolute profit that is doubled is only 100 million, and the absolute profit that is doubled is 10 billion. Of course, Lu Ming will choose the latter without hesitation.
.
Everyone present at the meeting was stunned when they heard this. Qi Wei nodded and said: "I understand!"
After repeated sideways jumps several times, it is not a problem for the 39 million AMD shares currently held to reduce the average cost to less than 1.5 US dollars, because the amplitude is large enough, and it is still a T+0 transaction.
You have to cherish the few time windows at present. Once you start to enter the market aggressively and go long, you can only take it all the way to the end, and you will not move easily in the middle.
After the discussion about AMD was over, Lu Ming turned to say: "We sold all the Tesla stocks we held after the meeting and shorted the company."
This was also a position that was established at about the same time as AMD last year.
Qi Wei nodded: "Understood!"
Regarding the operation of BOSS, everyone simply stopped asking, because it was another operation that they could not understand. This company was investing heavily in the new energy industry, and backhandedly dumped Tesla, the world-class leader in the industry.
Don't be too obsessed with the operation, but the subsequent trends in the market have proven that it is all a magical operation.
After thinking about it, BOSS's logic is that because Tiansheng Capital wants to build its own new energy vehicle ecosystem, it will squeeze Tesla's market in Greater China, so Tesla's stock price fell, so it sold?
