"The outbreak of AI Computing Power is not a linear process, but an exponential process.
The moat of CUDA ecosystem is not a moat, it is an ocean.
Nvidia is not a chip company, it is the operating system for the entire computing era.
In the next few years, its market value will rise from less than 100 billion now to 300 billion, 500 billion, or 1 trillion."
He paused.
"One trillion US Dollar market value. Lawyer Lin. Calculate how much 10% of the shares are worth."
Lin Shicheng did not count.
It's not that it can't be calculated, but it doesn't need to be calculated.
One hundred billion US Dollar.
"For this number, I am willing to bear the five points you mentioned.
I am willing to put every step of Era Vanguard in the SEC database.
I am willing to be watched by all of Wall Street. In extreme cases, I am willing to bear short-term floating losses of billions of dollars or more.
Because what I'm looking at is not the next three months, but the next three or five years."
His voice suddenly lowered a bit, bringing with it a kind of frankness that could only be revealed in front of the most trusted person.
"Lawyer Lin, I'm not gambling.
I am using today's regulatory costs and short-term fluctuations to trade for a position that no one can ignore in the future.
When the market value of Nvidia exceeds one trillion US Dollar, investors around the world will look back and study who is its largest external shareholder.
By then, the name Era Vanguard will appear in every research report, every Financial Headlines, and every business school case."
He looked at Lin Shicheng.
"I don't just want money. I want a position.
A position that makes Era Vanguard stand out from countless offshore funds Wall Street and become Core Shareholder, the greatest company of this era.
This position cannot be given to me 9.9% of the time.
Only if it exceeds ten percent, you can only get it if you become the top shareholder of Nvidia."
The cabin was so quiet that only the low hum of the engine was left.
Lin Shicheng lowered his head and his eyes fell on the line he drew on the notebook.
His pen tip hung above the line for a long time, and finally came down, writing a number on the other end of the line.
Ten billion US Dollar.
This is the value corresponding to one percent of the shares when Nvidia has a market value of one trillion US Dollar.
What Zhao Chen wants is more than ten percent.
That is a number exceeding one hundred billion US Dollar.
"Zhao Zong." Lin Shicheng's voice became very soft, as if he was talking to himself,
"I have been in Wall Street for twenty years and have seen many gamblers. Some of them won and some lost.
But I've never met anyone like you--"
He raised his head.
"Like you, you are obviously doing the craziest things, but you make every detail look like you have calculated it a thousand times."
Zhao Chen did not answer the call.
Lin Shicheng took a deep breath and closed the notebook.
"If it must exceed 10%, then I will put forward three conditions."
Zhao Chen nodded slightly.
"First, pledge financing is done in batches.
Don't bet all three billion US Dollar at once. Divide it into three to four batches, with at least two weeks between each batch.
In this way, the position building trajectory of Era Vanguard will not form a too steep curve in the SEC's Form 4 declaration.
The rhythm of buying in batches looks more like the continued Add Position of a long-term value investor, rather than a frenzied rush for funds by activist funds."
"Okay."
"Second, the leverage ratio should be controlled within one time.
The principal is 3 billion, the financing does not exceed 3 billion, and the total position of Add Position is 600 million.
Together with the existing 3.36 billion, the total position is controlled below 90 US Dollar.
The shareholding ratio is approximately between 9% and 11%.
In this way, even if SoftBank liquidates Nvidia and drops it below one hundred and twenty US Dollar, the floating loss of Era Vanguard will still be within the bearable range of net assets and will not be Forced Liquidation."
Zhao Chen was silent for a few seconds.
"Double, not twice?"
"Twice the leverage." Lin Shicheng's tone left no room for concession.
"Zhao Zong, this is the maximum value I can accept as your head of legal affairs and risk control. If it exceeds this number, I will resign."
The air in the cabin seemed to freeze for a moment.
Su Wantang's eyes moved from Zhao Chen's face to Lin Shicheng's face, and then back again.
Zhao Chen tapped his fingers on the armrest three times.
"Deal."
Lin Shicheng's shoulders finally relaxed, and he leaned back into his seat, as if he had just finished fighting an invisible war.
"Third, I will be the main author of the wording of the 13D declaration."
His voice returned to its usual calmness,
"The SEC requires disclosure of the purpose of shareholdings. I will control the wording within the scope of 'recognizing the company's long-term value and seeking constructive communication with the company's management on strategic development.'
There will never be sensitive words like 'acquisition', 'reorganization' or 'control'. Let the SEC and the market clearly know that Era Vanguard is a long-term Strategic Investment operator, not a barbarian at the door."
"Do as you say."
Lin Shicheng exhaled a long breath and leaned back into his seat, as if he had just finished a war where no gunpowder could be seen.
He picked up the completely cold coffee in front of him and took a sip. The bitter liquid slid down his throat, extinguishing some of the heat accumulated in his chest.
"Then follow this plan."
His voice returned to its usual calmness, he opened his notebook and quickly wrote a few lines on the blank page--
Three billion principal, three billion leverage, total position 6 billion, cumulative position 9.36 billion, and shareholding ratio of approximately 10.4%.
After he finished writing, he tore off the page, folded it in half, and put it in his suit pocket.
"In terms of buying rhythm, I will keep an eye on the selling window of SoftBank.
Masayoshi Son holds about 5% of Nvidia shares, and according to the current market value, it is more than 4 billion US Dollar.
Selling Pressure of this size cannot be completed in one day and usually lasts two to three weeks.
On the first trading day after the news is officially announced, Panic Selling will pour out intensively, and the stock price will most likely reach a sharp bottom.
That position is the best time for Era Vanguard's first batch of funds to enter the market."
Zhao Chen nodded.
"The first batch of funds advanced to one billion, including 500 million principal and 500 million leverage, and were taken in in batches when the panic was at its peak.
Don't rush in all at once, break it into hundreds of small and medium-sized orders, and use Algorithmic Trading to inhale slowly.
Don't let anyone see from the transaction details that one hand is collecting the goods.
The second batch of funds entered the market in the middle of Selling Pressure, which was about 1.5 billion. At this stage, the stock price would fluctuate, with copycats and Stop-loss Selling appearing alternately, with the largest fluctuations.
The third batch of funds, 2 billion, entered the market at the end of Selling Pressure, collecting all the chips from the hands of the last group of people who could not hold on.
The last 1.5 billion is used as mobile funds. If Nvidia has a second dip after SoftBank clears its position, all of it will be invested;
If it rebounds directly, wait for the pullback to open positions in batches."
Lin Shicheng's pen quickly recorded on the paper.
"The entire position building cycle is expected to be three to four weeks.
Calculated based on the range of 120 to 140 US Dollar, six billion US Dollar can buy approximately 43 million to 50 million shares.
Including the existing 22 million shares, the total holdings range from 65 million to 72 million shares, accounting for approximately 10.4% to 11.9% of the total share capital of Nvidia."
He raised his head and looked at Zhao Chen.
"Zhao Zong, I must tell you the time window for 13D declaration in advance.
SEC regulations require that a 13D must be filed within five working days after triggering the 10 percent threshold.
Once the position opening of Era Vanguard exceeds 10%, this declaration is inevitable.
Once 13D is submitted, an alert will pop up on the terminals of Bloomberg and Reuters within a few minutes.
Everyone in Wall Street will know that there is an offshore fund called Era Vanguard, which holds more than 10% of the shares of Nvidia.
By then, you and Era Vanguard will no longer be people under the water."
Zhao Chen tapped his fingers on the armrest twice.
"Then come up."