AI Value Investment Portfolio: Navigating Divergent Markets Amidst Semiconductor Rally with 52% Returns

On July 4, 2026, global stock markets presented a mixed picture, capturing investors' attention. While the KOSPI recorded a fierce surge of over 5%, breaking through the 8000-point mark, the Nasdaq Composite, heavily weighted with tech stocks, closed lower, showcasing a stark contrast. Amidst this volatility, the 'AI Value Investment Portfolio' has continued its steady upward trend, achieving a remarkable 52.07% return to date. The growth in assets from an initial $10,000 to over $15,207 suggests that insights into market trends and strategic asset allocation are proving effective.

Asset Trend: Maintaining Positive Momentum Amidst a Rollercoaster

Over the last five trading days, the portfolio's asset value began at $15,773, surged to $17,372, and then adjusted back to around $15,207. Following a peak on July 1st, a slight decline was observed, which can be interpreted as short-term market volatility or a portfolio rebalancing process. The key takeaway is the overall positive trend and the solid performance relative to the initial capital. With a profit exceeding approximately $5,000 secured, the portfolio is preparing for the next phase.

Holdings Analysis: A Blend of Undervalued Growth Stocks and Valuation Appeal

The current portfolio is concentrated in semiconductor and technology stocks, the core drivers of the AI era. Despite a high P/E ratio, NVIDIA (NVDA) maintains a low PEG ratio (0.61), indicating that its valuation remains attractive relative to its growth prospects, underpinned by the strong fundamentals of surging AI chip demand. Advanced Micro Devices (AMD) shows a high P/E (172.6) and PEG (1.30), reflecting the high growth expectations currently placed on it by the market. Micron Technology (MU) stands out with an exceptionally low PEG ratio (0.15) and high EPS ($44.19), boasting overwhelming undervaluation appeal. Broadcom (AVGO) is also driving stable growth through its robust fundamentals and reasonable valuation (PEG 0.69).

Meanwhile, some stock adjustments are noticeable in this divergent market environment. The over 5% drop in the Philadelphia Semiconductor Index suggests short-term profit-taking pressure across the semiconductor sector, which led to a sharp decline (-5.44%p) in the leveraged product SOXL (Direxion Daily Semiconductor Bu). Meta (META) and Amazon (AMZN) have relinquished some of their recent upward momentum and are currently consolidating, but still hold potential for future rebounds based on their positive valuation metrics (META PEG 0.81, AMZN EPS $7.67).

Recent Trades Review: Strict Valuation Criteria and Flexible Response

Recent trading activity clearly illustrates the portfolio's core strategy. The partial profit-taking on Amazon and Meta on July 3rd stemmed from a rational decision to rebalance after a short-term rally and lock in gains, aimed at avoiding excessive volatility and maintaining overall portfolio stability. Conversely, the new purchase of NVIDIA (NVDA) on June 26th was a proactive move capitalizing on the clear growth engine of AI chip demand and its valuation appeal, driven by a low PEG ratio. The acquisition of Micron (MU) on June 5th was a value play based on its aforementioned overwhelming undervaluation. This trading behavior demonstrates a strategy that combines strict valuation criteria with flexible responses to market conditions, rather than mere trend following.

Market Outlook: Seizing Opportunities Amidst Volatility, AI Theme Continues

The current market is exploring its direction through a complex interplay of the rise of major tech stocks, a short-term pause in the semiconductor sector, and movements in macroeconomic indicators (US 10-year Treasury yield at 4.48%, +0.11%p). While the Won-Dollar exchange rate's fall to the 1530 level suggests some recovery in risk appetite, high interest rates and geopolitical uncertainties continue to weigh on the market. However, the overarching AI trend is driving structural changes across industries beyond short-term market fluctuations, providing sustained growth momentum for the semiconductor and related technology stocks that this portfolio focuses on. A strategy of selecting attractive companies from a valuation perspective and consistently adjusting positions is expected to remain valid going forward.

※ This report analyzes the simulated operation of the AI Value Investment Portfolio and is not investment advice. Actual investments should be made based on your own judgment and responsibility.