AI Value Investment Report Outpaces Market with 62% Returns

AI Value Investing: Steady Profit March Amidst a Shaky Market

June 26, 2026. As global stock markets navigate their overall direction, the 'AI Value Investment Portfolio' continues its solid performance trajectory. While the KOSPI rallied over 3% to break the 8700 mark, the KOSDAQ saw a stark contrast with a sharp decline of over 4%. US markets showed mixed performance, with the S&P 500 and Nasdaq Composite indices experiencing slight drops, while the Dow Jones Industrial Average closed higher. The Philadelphia Semiconductor Index's strong performance, gaining over 3.5%, is a notable highlight. In this market environment, the portfolio currently stands at $16,248.236 in total assets, achieving a 62.48% return on initial investment of $10,000. This demonstrates the power of an unwavering investment strategy even during periods of increasing volatility.

The Narrative of Asset Fluctuations: Consistent Upward Trend Amidst Divergent Markets

Observing the portfolio's asset trend over the past five trading days reveals an effort to maintain a positive momentum despite market ups and downs. Total assets, recorded at $16,248.236 as of June 25, saw a slight decrease from $16,300.261 the previous day, June 24. However, this is interpreted as a natural consolidation phase following a steep upward trend that led to $18,035.382 on June 23 and $17,741.154 on June 22. Notably, the asset value, which was $17,741.154 on June 19, surpassing the $18,000 mark within just a few days, suggests that the value investment strategy, based on individual stock fundamentals, is offsetting market volatility and driving performance. The current cash balance of $252.147 ensures liquidity, preparing for flexible responses to future market conditions.

Key Stock Diagnosis: AI and Semiconductors, Rediscovering Valuation

The core holdings of the current portfolio are companies related to Artificial Intelligence (AI) and semiconductors. Nvidia (NVDA) was acquired at an average price of $182.49 for 24.46 shares and is currently held at $199. Its P/E ratio of 30.5 and PEG ratio of 0.64 still indicate an attractive valuation relative to its growth potential. An EPS of $6.53 supports its robust earnings foundation. Broadcom (AVGO) was purchased for 5.67 shares at $326.03 and is currently trading at $382.07, with a P/E ratio of 63.7 and a PEG ratio of 0.71. Despite a high P/E, the low PEG ratio suggests growth potential, substantiated by an EPS of $6.00. Micron Technology (MU) was acquired for 0.25 shares at $996 and is currently trading at $1,048.51. A P/E ratio of 23.7 and a remarkable PEG ratio of 0.31 emphasize its significant undervaluation, while a high EPS of $44.25 demonstrates its solid fundamentals. AMD (AMD), which has seen the most significant recent gains, was bought for 7.17 shares at $198.62 and is now trading at $519.74, with a P/E ratio of 172.7 and a PEG ratio of 1.33. The high P/E reflects growth expectations, but the PEG ratio suggests room for further stock price appreciation considering the scope of growth. Meta Platforms (META) was purchased for 0.98 shares at $653.56 and is currently down slightly at $557.67. However, a P/E ratio of 20.3, a PEG ratio of 0.81, and an EPS of $27.49 still make it an attractive entry point from a value investment perspective. Amazon (AMZN) was bought for 2.05 shares at $208.39 and has risen to $234.27. However, a P/E ratio of 31.7 and a PEG ratio of 1.83 suggest that its valuation might be somewhat burdensome relative to its growth. Nevertheless, an EPS of $7.40 indicates steady growth. The leveraged product SOXL (Direxion Daily Semiconductor Bu) was acquired for 17.15 shares at $61.36 and is currently showing substantial returns at $229.57. Its P/E ratio of 49.4 and PEG ratio of 1.18 simultaneously reflect the high volatility and growth expectations of the semiconductor sector.

Trading Review: Maintaining Strategic Balance and Capturing Opportunities

Examining recent trading activities reveals that the strategy focuses on maintaining portfolio balance while actively capturing undervalued stocks. The partial sale of SOXL on June 19 was a move to realize profits from a sharp rise and maintain portfolio equilibrium, indicating an intention to manage short-term volatility. The purchase of MU on June 5 was based on the clear logic of 'overwhelming valuation undervaluation,' with the PEG ratio of 0.31 serving as the basis for this decision. On the same day, a partial sale of SOXL was also conducted for short-term profit realization and balance adjustment. Trading activities in April show an effort to capture the strong growth potential in AI and semiconductors through 'aggressive position increases' in Nvidia (NVDA) and Broadcom (AVGO). Specifically, Nvidia was considered an active buying opportunity, reflecting its low PEG ratio and the market trend of surging AI chip demand. The frequent buying and selling of SOXL are interpreted as strategic moves to leverage the volatility of this leveraged product, secure short-term gains, and adjust portfolio weightings.

Market Outlook: Hidden Opportunities Amidst Volatility

The current market is characterized by inherent uncertainties due to various factors such as interest rates, oil prices, and geopolitical risks. Factors increasing volatility are acting in combination, including a decline in US 10-year Treasury yields, rising WTI and Brent crude prices, and a slight increase in the USD/KRW exchange rate. The downturn in virtual asset markets like Bitcoin and Ethereum also suggests a potential contraction in investor sentiment. However, within this macroeconomic environment, the strength of the Philadelphia Semiconductor Index and the robust valuation metrics of key AI-related companies maintain investment appeal in specific sectors. Stocks showing a low PEG ratio relative to their P/E ratio still possess significant growth potential, making it crucial to approach them with a long-term perspective, unaffected by short-term market noise. Moving forward, this portfolio will continue to seek opportunities to consistently create value amidst a volatile market, based on fundamental analysis and valuation indicators.

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