October 22 Investment Report: AI Value Investing Portfolio +45.3%

[Daily Market Insights] KOSPI Surges Over 3% on Semiconductor Tailwinds as 'AI Value Investing Portfolio' Takes a Breather

The Korean market delivered a spectacular rally on the 21st, with the KOSPI jumping more than 182 points in a single day. A daily gain of over 3% is unusual, and U.S. markets cruised as well, with the Nasdaq posting a solid gain above 1%. The Philadelphia Semiconductor Index climbed nearly 2%, proving that the AI demand thesis remains firmly intact. Meanwhile, the AI Value Investing Portfolio — which has grown from an initial $10,000 to $14,534, a cumulative gain exceeding 45% — experienced a slight pullback on the day. Still, the volatility index (VIX) falling to 16.7 suggests market sentiment remains stable.

A Pullback From the Peak, But the Power of 45% Returns Remains

The asset trajectory shows the portfolio peaked at $15,218 on the 15th and has been pressed down roughly 4% over the past week. The main culprit is Micron, the memory leader, whose stock has slid steadily from its highs. Even so, the track record — a 45% return versus the initial capital — remains unshaken. Notably, WTI crude, which rebounded to near $970 on the day, has plunged more than 5%, and the portfolio has held up defensively even amid a high-rate environment with the U.S. 10-year yield well above 5% — both encouraging signs.

A Valuation-Based Diagnosis of Holdings

NVIDIA, the portfolio's core holding, trades at $7.91 in EPS with a valuation that remains attractive when adjusted for growth, keeping its position as the prime beneficiary in AI demand's qualitative growth phase. Broadcom, with a PEG of 0.33, sits at a comfortably cheap level relative to growth, while Amazon trades at a price-to-sales ratio of 21x — relatively reasonable among large-cap tech stocks. Intel, by contrast, continues to post per-share net losses, and its recovery is slow. Leveraged products SOXL and TQQQ remain significantly below their highs despite the day's sharp rally, marking a point where short-term volatility management is needed.

Stock	Quantity	Purchase Price	Current Price	P/E
NVIDIA	25.26 shares	$184.21	$216.47	27.4
Broadcom	5.67 shares	$326.03	$334.37	42.7
Micron	0.83 shares	$972.67	$896.07	12.1
AMD	7.17 shares	$198.62	$534.74	136.4
Amazon	1.95 shares	$208.39	$262.63	21.1
Meta	0.55 shares	$653.56	$694.25	26.2
Intel	2.80 shares	$104.56	$91.69	-
SOXL	13.92 shares	$71.22	$97.55	22.0
TQQQ	1.13 shares	$76.34	$70.41	28.6

Recent Trade Review: Reallocating Capital Toward Undervalued Names

The past week's trades show a clear direction. On October 16 and again on the 9th, the portfolio sold a portion of its NVIDIA stake and added to Micron. With NVIDIA's single-stock weight exceeding 38%, concerns over portfolio concentration had grown, so funds were shifted to Micron — which sits in the same AI and semiconductor axis but trades at a price-to-sales ratio of around 5x, an extremely low valuation relative to growth. Rather than chasing near the peak, the portfolio bought in staggered tranches during dips, a restrained approach worth praising. Meanwhile, proactively trimming leveraged products in September and early October to build cash reflected risk management in anticipation of rising volatility.

Date	Type	Stock	Quantity	Price
2026-10-16	Buy	Micron	0.31 shares	$931.24
2026-10-16	Sell	NVIDIA	1.33 shares	$217.23
2026-10-09	Buy	Micron	0.11 shares	$1,035.84
2026-10-09	Sell	TQQQ	0.06 shares	$80.23
2026-10-09	Sell	SOXL	0.73 shares	$142.52
2026-09-18	Buy	Micron	0.19 shares	$977.50
2026-09-18	Sell	SOXL	0.77 shares	$114.82
2026-08-28	Sell	SOXL	0.81 shares	$123.05
2026-08-21	Buy	NVIDIA	0.84 shares	$216.85
2026-08-21	Sell	Meta	0.10 shares	$545.83

The Road Ahead: The Key Is 'Valuation Defense'

The key things to watch going forward are clear: the possibility that growth-stock valuations face growing pressure in an environment where U.S. long-term yields exceed 5%, and the fact that the won-dollar exchange rate edged up to 1,326 won, keeping export companies' profitability resilient. The plunge in oil prices could ease inflation concerns, but with Brent crude still holding above $110, optimism alone would be premature. The KOSPI's dramatic rally on the day is undoubtedly a positive signal, but a strategy like this portfolio's — prioritizing undervalued names on a valuation basis — is likely to shine precisely in periods when interest rates and exchange rates point in diverging directions.

※ This report analyzes a simulated trading record of the AI Value Investing Portfolio and is not investment advice. Actual investment decisions should be made at your own judgment and responsibility.