AI Investment Report: 57% High Returns Brighten Second-Half Outlook

AI Value Investment Portfolio Closes June with Strong Performance

On June 30, 2026, domestic and international stock markets concluded June on a positive note. The KOSPI rose by over 2% to settle above 8570, while the U.S. market, driven by strong performance in tech stocks, saw the S&P 500 and Nasdaq Composite indices each climb more than 1%, adding vitality to the market. The Philadelphia Semiconductor Index's notable surge of 3.8% particularly signaled high investor interest in technology stocks, especially within the AI sector. Amidst this market sentiment, the 'AI Value Investment Portfolio' recorded total assets of $15,773.127 by the end of June, continuing an impressive streak with a 57.73% return on initial capital of $10,000.

Asset Volatility and Returns: June's Trajectory

While the portfolio's asset value showed some volatility over the past five trading days, it maintained an overall upward trend. After reaching $18,035.382 on June 23, assets experienced a slight adjustment, falling to $16,649.69 on June 26, but stabilized at $15,773.127 as of June 29. This demonstrates the portfolio's resilience, preserving a solid profit base amidst short-term market fluctuations. The rally in U.S. tech stocks and momentum in the semiconductor sector at the end of June are analyzed to have positively impacted the portfolio's performance.

Analysis of Key Holdings: Balancing Growth and Value

The core strategy of the AI Value Investment Portfolio lies in identifying high-growth potential tech stocks at reasonable valuations. The current holdings reflect this strategy faithfully.

NVIDIA (NVDA) remains a strong growth contender, poised to benefit significantly from the surging demand for AI chips. Even at its current price, its Price-to-Earnings (PER) ratio of 29.5 and Price/Earnings to Growth (PEG) ratio of 0.59 highlight its attractive valuation relative to its growth prospects. Broadcom (AVGO), despite a PER of 60.6, boasts a PEG of 0.66, indicating that its strong earnings growth is supporting its stock price appreciation.

Micron Technology (MU) presents a compelling investment opportunity with a PER of 25.6 and a PEG of 0.17, signifying a considerable undervaluation. This reflects expectations for improved performance as the semiconductor industry recovers. For AMD, while its PER of 172.1 may seem high, a PEG of 1.25 suggests that its valuation is not excessive given its current high growth rate.

Meta Platforms (META) maintains its valuation appeal among tech stocks with a PER of 20.0 and a PEG of 0.80, underpinned by stable profitability and growth potential. Amazon (AMZN), with a PER of 31.7 and PEG of 1.83, carries a relatively higher valuation burden relative to its growth, but its continuous growth in the cloud business supports long-term investment. Leverage products like SOXL, known for their volatility, have significantly contributed to the portfolio's returns by capitalizing on the strength of the Philadelphia Semiconductor Index.

Recent Trades Reviewed: Seizing Strategic Opportunities

A review of recent transactions highlights the strategic decision-making of the portfolio management team. The additional purchase of NVIDIA (NVDA) on June 26 was a move to capture the valuation appeal driven by the AI chip demand surge and its low PEG ratio, demonstrating continued conviction in the AI sector. Conversely, the partial sale of SOXL on June 19 was a rational decision to realize some gains from its short-term surge and maintain portfolio balance.

SOXL's position had been adjusted previously. The sale of SOXL on June 5, coinciding with the purchase of Micron Technology (MU), is interpreted as an attempt to take profits from a volatile asset while reallocating funds to a stock with maximized valuation appeal. Consistent buying of NVIDIA (NVDA) since late April further signals a strategy to bolster bets on the long-term growth of the AI theme. Overall, the portfolio management team is executing strategic adjustments and portfolio restructuring by comprehensively considering valuation metrics and growth prospects, rather than reacting to short-term market fluctuations.

Market Outlook: Navigating Opportunities Amid Volatility

The current market is characterized by a mix of factors, including uncertainty regarding the timing of interest rate cuts, geopolitical risks, and the explosive growth of the AI industry. A slight decline in U.S. 10-year Treasury yields and stabilization in the Volatility Index (VIX) are positive for investor sentiment. However, upward pressure on the won-dollar exchange rate raises concerns about potential currency losses on overseas investments.

The performance of the AI Value Investment Portfolio validates the strategy of pursuing both growth and value. While acknowledging the likelihood of continued market volatility, concentrated investment in companies like NVIDIA and Micron, which combine distinct growth prospects with reasonable valuations, is expected to remain a viable strategy. The overall strength in the semiconductor sector serves as a significant supporting factor for this positive outlook.

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