AI Value Investing Report Breaks 55% Return, Proving Intersection of 'Growth and Value'

At the Heart of the Semiconductor Rally... Hitting the Intersection of 'Growth and Value'

On July 9, 2026, global financial markets closed higher, buoyed by strong momentum centered on semiconductors. The Philadelphia Semiconductor Index (SOX) surged more than 4%, leading the Nasdaq, and the market's attention is focused on the AI Value Portfolio. This portfolio combines the growth potential of 'AI' with strict value metrics like 'PER/PEG,' emphasizing tangible performance and undervalued assets rather than misplaced expectations. The results have been proven by a staggering return exceeding 55% of the principal investment to date. This success is attributed to betting on cold, hard numbers rather than being swept up by market fervor.

Asset Flow: Upward Trajectory Amidst Volatility

Looking at the asset flow over the past 5 days, it is clear that value was added not simply by drawing an upward curve, but by swallowing market volatility. After realizing profits for two consecutive days on the 3rd to take a brief pause, the semiconductor market heated up again on the 7th, causing the asset value to jump by more than $700 (approx. 4.7%) in a single day and continue to break records. The relentless march to new highs throughout July demonstrates the power of this strategy's 'dynamic rebalancing.' It appears that the process of selling overheated stocks and acquiring undervalued growth potential is finally bearing fruit.

Holding Diagnosis: Victory of Fundamentals

The strength of this portfolio is fully revealed in the valuation metrics of its holdings. MVPs NVIDIA (NVDA), Broadcom (AVGO), and Micron (MU) have shed the stigma of being expensive stocks, settling into the 'undervalued' zone based on PEG indicators. In particular, NVIDIA's PEG of 0.60 and Micron's 0.15 suggest that stock prices remain low relative to the growth the market expects. Considering that Micron's PEG was overwhelmingly low at the time of purchase in June, this serves as evidence that the strategy of following corporate value, disregarding market whims, was valid.

Conversely, recently sold Amazon (AMZN) and Meta (META) show increasing valuation burden, with PER in the 22-31x range and a PEG of 1.87 (Amazon). The decision to realize some profits and shift weight toward relatively attractive semiconductor stocks proves to be a scoring move. The current surge in the semiconductor index can be interpreted as a result supported by these financial fundamentals.

Ticker	Qty	Avg Price	Current Price	PER
AVGO	5.67	$326.03	$388.69	64.6
AMD	7.17	$198.62	$517.41	172.5
MU	0.25	$996.00	$948.80	21.5
SOXL	17.15	$61.36	$174.82	29.7
NVDA	25.76	$183.15	$204.12	31.3
META	0.93	$653.56	$603.12	22.4
AMZN	1.95	$208.39	$243.62	31.6

Trading Review: Dancing on a Knife's Edge to Catch a Bigger Move

The most striking move was the skillful diving in SOXL (3x Leveraged Semiconductor ETF). Between April and June, SOXL consistently sold a portion of its holdings with remarkable precision during temporary surges to lock in profits. This was 'artistic trading' that went beyond simple profit-taking to maintain portfolio balance and endure the semiconductor sector's consolidation. Based on the funds secured, NVIDIA and Micron were aggressively bought, capturing the post-crash rebound in semiconductors as larger gains. The record of "overwhelming valuation undervaluation" when buying Micron in early June eventually became the trigger that most quickly detected the current Exodus in the semiconductor sector.

Date	Type	Symbol	Qty	Price
2026-07-03	SELL	AMZN	0.10	$242.67
2026-07-03	SELL	META	0.05	$582.90
2026-06-26	BUY	NVDA	1.29	$195.74
2026-06-19	SELL	SOXL	0.90	$279.29
2026-06-05	BUY	MU	0.25	$996.00
2026-06-05	SELL	SOXL	0.95	$262.70
2026-04-27	BUY	NVDA	0.59	$216.61
2026-04-24	SELL	SOXL	1.00	$128.32
2026-04-17	BUY	NVDA	0.93	$201.68
2026-04-16	SELL	SOXL	1.05	$88.37

Market Outlook: Reason Squeezes Through the Exodus

The decline in the U.S. 10-year Treasury yield to 4.539% is acting as a positive for the stock market. The VIX (Fear Index) also dropped to the 16 level, indicating that market anxiety is easing. However, market sentiment remains divided regarding Nasdaq overheating concerns and the valuation re-rating of NVIDIA and related stocks. This portfolio is navigating this volatility by realizing profits on overheated stocks and redeploying that capital into growth stocks with low PEG ratios. Given the outlook that the semiconductor sector's earnings explosion will continue for some time, this portfolio's 'valued growth' strategy is likely to remain effective.

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