Investment Report: AI Value Portfolio Proves Its Worth with 64% Returns Amid Market Fear

July 14, 2026. Outside a window in Seoul's financial district, a red warning light blinks. With the KOSPI plummeting over 10% and crashing through the 6,600 level, the won/dollar exchange rate has touched 1,496 won, prompting a revaluation of foreign assets. The global equity market offers little solace either. Reflecting anxiety over the U.S. Federal Reserve's interest rate policy, the yield on 10-year Treasury notes surged to the mid-4.6% range, dragging down both the Nasdaq and S&P 500 indices. The VIX, known as the fear gauge, soaring 14% in a single day, underscores how severely investor sentiment has contracted. Yet, amidst these market tempests, the 'AI Value Portfolio' maintains powerful upward momentum. Recording a staggering return of +64.08% against initial capital, it validates the effectiveness of an investment strategy that captures both valuation and growth.

Performance Flow: Defense and Offense Amid Volatility

The asset flow of the portfolio over the past week revealed its true nature, going beyond a simple upward curve to skillfully leverage market volatility. Asset value, which stood at $15,795 on July 7, swelled to $16,408 in just a week. During this period, the portfolio secured growth momentum through strategic buying while managing risks by realizing profits on some holdings. In particular, even as the U.S. market underwent a tech-centric correction, the portfolio solidified its downside defense by firmly holding core semiconductor positions like Micron (MU) and Nvidia (NVDA). This, combined with the synergy of strategically placed leveraged ETFs, led to excess returns that far outpaced the market's decline.

Holdings Diagnosis: The Ins and Outs of Valuation

Current valuation indicators for holdings present an interesting dichotomy. Despite being typical 'growth stocks', Nvidia, Broadcom (AVGO), and Micron record PEG ratios (price-to-earnings divided by growth rate) below 1 (Nvidia, Micron) or approaching the 0.5 level (Broadcom). This reflects the market's judgment that future growth potential remains undervalued relative to current share prices. Conversely, AMD records a high PER and PEG, suggesting the market has already priced in a bold premium and hinting at sensitivity to trend shifts.

META and Amazon maintain stable valuations in the PER 20-30 range, proving their resilience as tech mega-caps. Above all, Micron's ability to maintain a PER around 22 during this downturn, flaunting its appeal as an 'undervalued growth stock,' serves as a core axis of this portfolio's defensive strength.

Ticker	Qty	Avg Price	Current Price	PER
Nvidia (NVDA)	25.76	$183.15	$210.96	32.3
Broadcom (AVGO)	5.67	$326.03	$399.97	66.7
Micron (MU)	0.25	$996.00	$979.30	22.1
AMD	7.17	$198.62	$557.89	185.3
Meta (META)	0.93	$653.56	$669.21	24.3
Amazon (AMZN)	1.95	$208.39	$245.34	29.3
SOXL	16.30	$61.36	$192.26	32.7
TQQQ	2.86	$76.34	$77.03	39.5

Recent Trade Review: Timing Offense and Defense

The most eye-catching move was the purchase of TQQQ on July 10. Under the judgment that the tech mega-cap-led rally would continue, it demonstrated a will to aggressively capture additional upside based on the Nasdaq index. This contrasts with the move a few days prior to selling part of SOXL to adjust volatility. In short, it was a shrewd trade that involved realizing some semiconductor leverage profits to secure cash position, then re-entering Nasdaq leverage once the market flow was confirmed. Additionally, selling Amazon and Meta between late June and early July to rebalance showed a sophisticated strategy aimed not merely at chasing profits, but at managing correlations within the portfolio.

Date	Type	Symbol	Qty	Price
2026-07-10	Buy	TQQQ	2.86	$76.34
2026-07-10	Sell	SOXL	0.86	$192.45
2026-07-03	Sell	AMZN	0.10	$242.67
2026-07-03	Sell	META	0.05	$582.90
2026-06-26	Buy	Nvidia (NVDA)	1.29	$195.74
2026-06-19	Sell	SOXL	0.90	$279.29
2026-06-05	Buy	Micron (MU)	0.25	$996.00

Market Outlook: Crosscurrents of Rate Shocks and AI Trends

The biggest variable currently weighing on the market is the surge in long-term U.S. interest rates. The 10-year yield, surpassing 4.6%, acts as a threatening factor forcing a re-evaluation of tech stock valuations. In particular, high-PER names like AMD may react sensitively to rising discount rates resulting from rate hikes. However, one should not become fixated solely on the rate shock narrative. While WTI crude soaring over 11% suggests inflation risks, it also highlights the volatility in the energy and resources sectors.

Yet amidst this turmoil, the 'AI' mega-trend remains unshaken. Despite risk aversion signaled by weakness in Bitcoin and Ethereum, capital flow into key tech stocks remains uninterrupted. As global financial uncertainty grows, the 'K-shaped' divergence—where capital concentrates on tech semiconductor sectors with certain earnings and growth—is likely to strengthen. As this portfolio demonstrates, the flexibility to secure resilience through profit-taking and then re-board the growth engine may be the only weapon to navigate the current market conditions.

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