AI Value Investment Portfolio: Navigating Steadily Through Fierce Market Headwinds, Defending Against Volatility with 'AI Semiconductor' Portfolio Adjustments

[June 05, 2026]

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On June 5, 2026, global financial markets were engulfed in a widespread downturn, sending chills down investors' spines. While both the KOSPI and KOSDAQ experienced significant drops, along with major U.S. indices falling by approximately 2-5%, the Philadelphia Semiconductor Index plunged by over 10%, amplifying sector-wide anxiety. Amidst these fierce market headwinds, the 'AI Value Investment Portfolio' continued its robust performance, achieving a cumulative return of +76.12%. Recent trading activities notably reveal efforts to mitigate market shocks through flexible portfolio adjustments in preparation for increased volatility.

Performance Trajectory: Steadfast Wealth Accumulation Amidst Rollercoaster Ride

The asset fluctuation trend of the 'AI Value Investment Portfolio' over the past five trading days fully reflected the market's turbulent waves. Starting at $16,845.607 on June 1, total assets saw a slight increase to $17,201.403 on June 2. After soaring to $18,323.955 by June 4, assets retreated to $17,612.106 on June 5, coinciding with the market crash, creating a rollercoaster trading environment. Nevertheless, the overwhelming cumulative return of 76.12% year-to-date once again proves the effectiveness of a strategy that has approached growth stocks centered on AI technology with a long-term perspective, grounded in their fundamental strength.

Holdings Analysis: Balancing Valuation and Growth

The stocks currently constituting the portfolio have been carefully selected for their reasonable valuations alongside their growth potential. NVIDIA (NVDA), a leader in the AI chip market, continues to show strong momentum, trading at $218.66 per share. While its P/E ratio of 33.4x may seem somewhat high, its PEG ratio of 0.66 indicates it remains an attractive valuation considering its future growth prospects. Broadcom (AVGO) is also trading at $418.91 per share and has a high P/E ratio of 69.9x, but with a PEG of 1.05, its valuation is considered not excessive relative to its growth.

Advanced Micro Devices (AMD) is trading at $523.20 per share, with a high P/E ratio of 175.6x, reflecting the market's strong expectations for its rapid market share expansion and new product launches in the AI sector. Although its PEG ratio of 1.31 may present a slight burden, there is room for its valuation to ease if it continues to strengthen its market dominance.

Meta Platforms (META) is trading at $627.57 per share, maintaining an attractive valuation relative to its solid fundamentals, with a P/E ratio of 22.8x and a PEG of 0.86. Amazon (AMZN) is trading at $253.79 per share, driven by growth in its cloud and AI services. With a P/E of 31.6x and a PEG of 1.83, its growth potential is high, though some valuation premium exists.

A particularly noteworthy addition is Micron Technology (MU). Recently added to the portfolio at $996.00, this stock boasts exceptional valuation appeal with a PEG ratio of just 0.37, despite a P/E of 47.0x. Expected to benefit from the increasing demand for AI computation and data storage, this move further strengthens the portfolio's value investment stance. Meanwhile, recent trading records indicate that its position in SOXL, a high-leverage product, is being adjusted due to its high volatility.

Recent Trade Review: Volatility Management and Valuation Optimization

Recent portfolio management demonstrates a flexible response strategy in anticipation of increasing market volatility. On June 5, the substantial purchase of Micron (MU) at approximately $996 was a result of focusing on its very low PEG ratio and clear signs of valuation undervaluation. On the same day, the partial sale of the leveraged semiconductor ETF SOXL was interpreted as a strategic decision to realize some profits from its recent surge and to adjust the portfolio's risk asset allocation.

This aligns with the ongoing strategy of adjusting SOXL's weighting since late April. From April 13 to April 16, SOXL was sold in several tranches to lock in profits from its short-term rally and rebalance the portfolio. On April 27, the stake in NVIDIA (NVDA) was aggressively increased. This was a preemptive move considering the surge in AI chip demand, NVIDIA's sustained growth potential, and its attractive PEG ratio at the time. Additionally, further purchases of Broadcom (AVGO) on April 13 and another purchase of NVIDIA (NVDA) on April 10 were driven by a positive outlook for the semiconductor sector, its robust momentum, and attractive valuations. These trades clearly illustrate the 'AI Value Investment Portfolio's' characteristic of responding flexibly to market conditions, based strictly on valuation metrics and growth potential.

Market Outlook: Deepening Stock Selection Amid Macroeconomic Uncertainty

The current global financial market is exhibiting high volatility due to a combination of geopolitical risks, more persistent-than-expected inflation, and subsequent monetary policy uncertainty. The U.S. 10-year Treasury yield exceeding 4.5% and the VIX index surging by 39.68% signal extreme anxiety among market participants. The won-dollar exchange rate also surpassing the 1,550 won mark, heightening instability in the foreign exchange market.

In this environment, the 'AI Value Investment Portfolio' will focus on reorganizing its holdings around high-quality companies with prominent valuation appeal, fine-tuning the portfolio to be less sensitive to market fluctuations. In particular, companies that are driving AI technological innovation and creating tangible value are judged to have the potential to deliver significant long-term returns to investors by cutting through short-term market noise. Moving forward, it is necessary to concentrate on pursuing stable returns through a 'stock picking' strategy based on fundamentals.

Recent Trading Activity

※ This report analyzes the simulated performance of the AI Value Investment Portfolio and does not constitute investment advice. Actual investments should be made at your own discretion and responsibility.