Amid Market Sell-Off, 'AI Value Investment Portfolio' Records 60% Gains via Valuation in Investment Report

[Daily Market Insights] In the Eye of the Panic, Victory for 'Growth at a Reasonable Price'

Declines reminiscent of Black Monday. On July 16, 2026, the Korean stock market was submerged in a sea of red. The KOSPI plummeted over 5%, settling at the 6,800 level, while KOSDAQ also failed to avoid a decline of over 3%. Unlike the U.S., where the VIX—a gauge of market fear—soared, the U.S. market almost appeared as a safe haven by comparison. Amid this market downturn, the 'AI Value Investment Portfolio' flexed its muscle, recording returns of over 60% compared to its inception. This result was brought about by thorough valuation principles amidst waves of volatility where fear and greed intersect.

Unchanging Principles, Victory of Valuation

The most distinct characteristic of this strategy is clear: even amidst the scorching AI frenzy, it selected only stocks possessing compelling valuations with a cool head. Looking at asset flows over the last 5 days, the portfolio has consistently trended upward despite frequent fluctuations, recently surpassing $16,000. This is akin to navigating stormy waters using the 'PEG' indicator as a compass to find stocks where the price is cheap relative to growth potential (G).

Core positions NVIDIA (NVDA), Broadcom (AVGO), and Micron (MU) are showing overwhelming figures with PEG ratios of 0.65, 0.45, and 0.14, respectively. This is evidence that the pace of corporate performance growth far exceeds the current stock price. particularly in Micron's case, the PER is only in the late 20s, but the PEG indicator appears around 0.14, demonstrating how much the market is undervaluing the technical recovery and AI memory demand. Conversely, AMD's PEG surpassed 1.3, indicating valuation burdens, suggesting that even within the same semiconductor sector, stock selection is critical.

Holding Diagnosis

Ticker	Qty	Avg Price	Current Price	PER	PEG
AVGO (Broadcom)	5.67	$326.03	$389.11	65.0	0.45
AMD (Advanced Micro Devices)	7.17	$198.62	$548.13	182.1	1.34
MU (Micron)	0.25	$996.00	$983.12	21.2	0.14
NVDA (NVIDIA)	25.76	$183.15	$211.80	32.5	0.65
META (Meta)	0.93	$653.56	$661.04	24.0	0.97
AMZN (Amazon)	1.95	$208.39	$247.49	29.6	1.41
SOXL (Semiconductor 3x)	16.30	$61.36	$176.66	30.0	0.89
TQQQ (Nasdaq 3x)	2.86	$76.34	$75.02	38.5	1.32

META and Amazon maintain PERs in the 20-30 range, showing stable valuations and holding typical 'Growth at a Reasonable Price' positions that balance growth with appropriate pricing. The 3x leveraged ETFs, TQQQ and SOXL, act as double-edged swords increasing portfolio volatility, but comparing recent buy prices to current prices reveals they are contributing significant gains through leverage. However, the similar buy and current prices for TQQQ suggest that recently entered positions are acting as a buffer to absorb volatility.

Strategic Week: Intersection of Offense and Defense

Analyzing recent trading history reveals savvy fund management following the trends. Selling portions of SOXL from the end of last month to the beginning of this month to realize profits was a move that pre-emptively guarded against sector overheating. In particular, selling SOXL in mid-to-late June to adjust portfolio balance was a case of slamming the brakes in response to the semiconductor sector's short-term surge.

Conversely, in early July, it appears the trend was caught again. On July 10, detecting a bullish trend centered on tech mega-caps, TQQQ was purchased to aggressively capture the Nasdaq-led rise. This is interpreted as an intention to maximize returns by riding the Nasdaq index during the U.S. market's bullish phase. Additionally, expanding exposure to 'undervalued AI growth stocks' by buying Micron and NVIDIA is noteworthy.

Recent Trading History

Date	Type	Symbol	Qty	Price	Reason
2026-07-10	BUY	TQQQ	2.86	$76.34	Sustained strength in tech mega-caps, aggressive capture of Nasdaq-led rise
2026-07-10	SELL	SOXL	0.86	$192.45	Profit taking after short-term surge & adjusting portfolio volatility
2026-07-03	SELL	AMZN	0.10	$242.67	Momentum sustained, profit taking & balance adjustment
2026-07-03	SELL	META	0.05	$582.90	Balance maintenance & profit taking following short-term surge
2026-06-26	BUY	NVDA	1.29	$195.74	Surge in AI chip demand, attractiveness highlighted by low PEG
2026-06-05	BUY	MU	0.25	$996.00	Very low PEG ratio, overwhelming undervaluation appeal

Market Outlook: Clear Trends Amidst Uncertainty

Currently, the KRW/USD exchange rate remains in the 1,480 won range, weighing on the Korean capital market, but positive signals include the stabilization of the U.S. 10-year Treasury yield around 4.5% and a declining VIX. If the Korean market's shock is largely psychological, U.S. AI and semiconductor sectors backed by earnings growth remain attractive investment destinations.

However, due to the high proportion of leveraged ETFs, careful monitoring of single-asset volatility is required. The portfolio currently maintains a balance between technical momentum and valuation stability. Moving forward, discovering 'undervalued growth stocks' based on PEG indicators and managing liquidity will remain the key to this strategy.

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