October 5 Investment Report: AI Value Investing Portfolio Up +65.3%

With the KOSPI holding above the 7,000 level for the first time in history, the New York stock market also continued its modest upward march, led by semiconductors. The Philadelphia Semiconductor Index surged 2.4%, once again proving the strength of AI demand, while the AI Value Investing Portfolio is riding the bull market, posting total assets of $16,527 — a 65.3% return on its initial $10,000 capital.

Performance Trajectory: A Steady Climb Without Pullbacks

Looking at the asset movement over the past five days, this portfolio has steadily grown its assets. Starting from $16,243 at the end of last month, it closed higher for three consecutive days in October, reaching $16,527. Notably, it gained nearly $150 on October 2 alone, underscoring that semiconductor holdings such as Micron and Nvidia account for a large share of the assets. That said, given the portfolio's use of leveraged products, it is worth cautioning that declines could widen once the index begins to correct.

Holdings Analysis: Growth Value All-In on Semiconductors

Stock	Quantity	Purchase Price	Current Price	P/E
Broadcom	5.67 shares	$326.03	$343.64	43.9
AMD	7.17 shares	$198.62	$615.73	156.3
Amazon	1.95 shares	$208.39	$248.23	20.0
TQQQ	1.19 shares	$76.34	$78.73	32.0
Intel	2.80 shares	$104.56	$120.00	-
Meta Platforms	0.55 shares	$653.56	$725.93	27.3
Nvidia	26.59 shares	$184.21	$230.86	29.1
SOXL	14.65 shares	$71.22	$153.69	51.2
Micron	0.42 shares	$987.48	$1,097.39	14.8

The backbone of the portfolio is, without question, Nvidia. It has built up gains of more than 25% over its purchase price, while its valuation relative to growth (PEG of 0.48) still remains below 1. While the market questions the sustainability of AI infrastructure investment, this can be interpreted as earnings per share growing faster than the stock price. Micron, in the same vein, is the jewel of this portfolio. Despite earnings growth fueled by strong HBM supply and demand, its earnings multiple stands at just 14.8x — and a mere 0.16x on a growth-adjusted basis — keeping the buy thesis of "an undervalued segment of the memory supercycle" intact.

AMD has roughly tripled from its purchase price, but with its earnings multiple exceeding 150x, growth expectations are judged to be already substantially priced in. Intel remains a burden with continued losses, but it is being held at $120 on expectations of benefiting from the restructuring of the AI supply chain. SOXL contributed significantly to returns thanks to its 3x semiconductor leverage, but through successive trimming, the gains from the tailwind period have been shifted into individual stocks.

Recent Trade Review: Unwinding Leverage, Rotating Into Value

Date	Type	Stock	Quantity	Price
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 Platforms	0.10 shares	$545.83
2026-08-21	Sell	Micron	0.03 shares	$974.33
2026-08-21	Sell	SOXL	0.85 shares	$122.21
2026-08-14	Buy	Intel	2.80 shares	$104.56
2026-08-14	Sell	SOXL	0.90 shares	$145.36
2026-08-07	Sell	SOXL	0.95 shares	$132.33

The strategy read from the trade history is clear. Since August, the portfolio has sold SOXL in five tranches to systematically reduce leverage exposure, reallocating the proceeds into Nvidia, Micron, and Intel — stocks within the same sector that are undervalued relative to their growth. Rather than betting on index direction, the strategy consistently reveals its identity as a pure value approach grounded in earnings multiples and growth-adjusted valuations. While this is not the way to maximize returns in a bull market, it is assessed as a defensive restructuring that lowers volatility risk at elevated levels.

Market Outlook: Rate Caution Amid Optimism

The won-dollar exchange rate has fallen to 1,342, showing clear won strength, and with the VIX down to the low 15s, market sentiment remains comfortable. The simultaneous rise of Bitcoin and gold signals that liquidity expectations persist. However, the 10-year US Treasury yield has climbed to the upper-5% range, adding weight to the burden of long-term rates. In a high-rate environment, stocks that have risen without valuation support are typically the first to correct. A portfolio like this one, centered on stocks undervalued relative to growth, is expected to demonstrate relative defensive strength even as the index trades within a range.

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