AI Value Investing Report Leads Market with 77% Return

[Market Insights] AI Value Investing Portfolio Drives 77% Return, Fueled by the Power of Valuation

June 20, 2026, 17:24:58 (KST)

Today, the domestic stock market entered a period of consolidation, with a combination of profit-taking and cautious sentiment prevailing. The KOSPI closed down 0.13% at 9052.42, while the KOSDAQ plummeted 3.43% to finish at 966.59. Meanwhile, the positive momentum from the New York stock market failed to extend its influence to the Asian markets. Amidst this market volatility, the 'AI Value Investing Portfolio' is drawing significant attention, achieving an impressive return of 77.41%. An initial capital of $10,000 has grown to $17,741, demonstrating solid performance that far surpasses the market average.

Asset Fluctuations: Steady Gains Amidst Rollercoaster Movements

Examining the portfolio's asset trends over the past five days reveals a rollercoaster-like trajectory. After a brief dip to $16,443 on June 18th, assets recovered notably to $17,741 on the 19th, reaffirming the upward trend. These fluctuations can be attributed to the price movements of held stocks and recent trading activities. On June 19th, a portion of SOXL (Direxion Daily Semiconductor Bu) was sold to rebalance the portfolio and realize short-term gains. This move is interpreted as a strategy to enhance overall risk management by cashing in on some assets that had experienced rapid appreciation.

The AI Era: Focusing on 'Undervaluation' - A Look at Holdings

The core principle of this portfolio lies in identifying 'value' among companies poised to lead the artificial intelligence (AI) era. The portfolio is primarily centered around semiconductor and AI-related technology firms, making a close examination of their valuation metrics crucial.

Nvidia (NVDA) is currently trading at $210.69, with a P/E ratio of 32.3x against an EPS of $6.53. This is considered a reasonable valuation relative to its growth potential, and a PEG ratio of 0.65 specifically indicates that the company's growth rate is outpacing its stock price appreciation. Broadcom (AVGO), at its current price of $411.35 with an EPS of $6.03, shows a P/E of 68.2x and a PEG of 0.75x, demonstrating growth potential backed by strong fundamentals.

However, Advanced Micro Devices (AMD) faces some valuation pressure, trading at $537.37 with an EPS of $2.99, resulting in a high P/E of 179.7x and a PEG of 1.29x. This reflects high growth expectations, but a PEG ratio exceeding 1 suggests that consistent future earnings growth needs to be closely monitored.

Meta Platforms (META) maintains a relatively attractive valuation among Big Tech, trading at $577.22 with an EPS of $27.49, a P/E of 21.0x, and a PEG of 0.83x. Amazon (AMZN) is priced at $244.39 with an EPS of $7.77, a P/E of 31.5x, and a PEG of 1.83x. While it is a growth stock, its high PEG ratio indicates that future profitability improvements will be critical. Micron Technology (MU) presents outstanding undervaluation potential at $1133.99, with an EPS of $21.23, a P/E of 53.4x, and an exceptionally low PEG of 0.36x, making it a key contributor to the portfolio's overall valuation appeal.

The leveraged product SOXL, trading at $279.29 with a P/E of 60.1x and a PEG of 1.29x, inherently carries high volatility. This offers aggressive profit opportunities depending on market conditions but underscores the importance of risk management.

Trading Activity: Capturing 'Balance' and 'Opportunity'

The recent trading history demonstrates that this portfolio operates not on a 'blind faith' approach, but with clear principles. The sale of SOXL on June 19th was a strategic decision aimed at maintaining portfolio balance, alongside realizing some short-term gains from its rapid ascent. This is interpreted as a move to reduce excessive leverage exposure and secure stability.

The decision to purchase MU on June 5th is particularly noteworthy. At that time, MU exhibited overwhelming undervaluation with an extremely low PEG ratio (0.36), presenting a rare opportunity to enter at a price significantly below its growth potential.

Trading activity in April also warrants attention. The aggressive increase in Nvidia (NVDA) holdings (April 27th, April 17th) was based on surging AI chip demand, sustained growth potential, and its low PEG ratio. This showcases a strategy of reading market trends and proactively investing in the most valuable stocks within them. The purchase of AVGO (April 13th) was also a strategic judgment grounded in strong fundamentals and a positive outlook for the semiconductor sector. The frequent trading of SOXL in April adhered to consistent principles of taking profits from short-term rallies and rebalancing the portfolio.

Glimpse of the Market: Volatility Amidst Stability, Opportunity Lies in 'Value'

The current market is showing mixed trends, with domestic stocks facing profit-taking pressure despite the strength in the New York market. While the yield on U.S. 10-year Treasury notes remains stable around 4.45%, movements in WTI oil prices and gold futures are somewhat divergent. Notably, a slight uptick in the Volatility Index (VIX) suggests that market participants remain cautious.

In this environment, the performance of the 'AI Value Investing Portfolio' proves how a strategy grounded in a company's intrinsic value and growth potential can yield powerful long-term results, remaining unfazed by short-term market fluctuations. While some individual stock valuations have become somewhat elevated, the key lies in maintaining overall portfolio balance by appropriately incorporating stocks with low PEG ratios. Moving forward, an investment strategy that focuses on companies with reasonable valuations, alongside technological innovation in the AI era, is expected to remain effective.

※ This report analyzes the simulated operations of an AI Value Investing Portfolio and is not investment advice. Actual investments should be made at your own judgment and risk.