39% Returns Amid Soaring Exchange Rates: A Victory for the AI Investment Report

On the first day of August 2026, the Seoul financial market is recording an 'unprecedented surge.' While the won/dollar exchange rate soared to the 1,440 won range, raising fears of a 'Taper Tantrum'-level interest rate shock, the Korean stock market instead retaliated and skyrocketed like a rocket. In a bizarre phenomenon where the KOSPI jumped a whopping 17.91% in a single day to breach the 6,600 mark and the KOSDAQ also surged over 11%, the 'AI Value Investment Portfolio' rode these stormy waves to achieve a 39.11% return on initial capital, proving the sophistication of its investment strategy.

1,000-Point Surge in a Day, Tech Stocks Smile Despite Interest Rate Anxiety

Despite macroeconomic uncertainties such as the U.S. 10-year Treasury yield spiking to 4.745% and the sharp depreciation of the won, the market chose to rally aggressively at the close on the 1st. Notably, the rally was led by semiconductors and big tech stocks that had been valued with low valuations. The historic daily gains in the KOSPI and KOSDAQ are interpreted as a result of a combination of 'panic buying' psychology spread across the market rather than individual value discovery, and the reflexive benefits of structural undervaluation.

In this market environment, the 'AI Value Investment Portfolio' demonstrated strong defensive capabilities alongside an aggressive upward trend, centering on AI and semiconductor sectors with solid earnings and growth potential despite the pressure of rising U.S. 10-year yields. Looking at asset trends over the last 5 days, we can glimpse a process of 'dynamic reallocation' where the strategy fortifies defenses and then switches to offense as market volatility increases. The seemingly conservative moves of selling META and reducing the TQQQ weight were ultimately preparation to ride a more powerful ascent via SOXL (Semiconductor Leverage).

Holding Diagnosis: The Perfect Intersection of 'Growth' and 'Price'

The core driver of the portfolio's returns lies in strict value judgment based on the PEG (Price/Earnings-to-Growth) ratio. The current holdings are not high-dividend or consumer stocks, but technology stocks with AI as a definite growth driver.

In particular, Micron (MU) is showing a price close to the technical moving average with a PER of 16.7x and a PEG of 0.11, but given its growth potential, the stock is considered significantly undervalued, making it the stock with the most room for additional upside. NVIDIA (NVDA) has also settled at a PEG in the 0.5 range with a PER of around 30x, suggesting that despite the high stock price, potential returns remain sufficient when considering growth. On the other hand, Broadcom (AVGO) is recording a high PER of 64.5x, but with a PEG of 0.42, it proves it is still a high-quality company where growth speed can catch up with the stock price.

SOXL, which led the recent steep rise, is the result of amplifying the semiconductor sector's momentum through leverage. It shows that the strategy of maximizing returns through leverage when valuation metrics are stable, rather than simply investing in the sector, was on target.

Ticker	Qty	Purchase Price	Current Price	PER
NVIDIA (NVDA)	25.76	$183.15	$195.04	29.9
AMD	7.17	$198.62	$485.39	161.3
Micron (MU)	0.25	$996.00	$874.66	16.7
Amazon (AMZN)	1.95	$208.39	$235.50	27.1
Meta (META)	0.64	$653.56	$539.03	20.3
Broadcom (AVGO)	5.67	$326.03	$387.84	64.5
TQQQ	1.70	$76.34	$63.30	32.5
SOXL	18.93	$71.22	$114.72	19.5

Essence of Trading Strategy: Disconnection and Connection of 'Selection and Concentration'

Transaction history from late July to early August reveals the portfolio manager's intense deliberation. At the end of July, selling a portion of Meta (META) was intended to reset the capital flow from 'growth' to 'value' due to concerns about slowing ad revenue and high dividend ratios. Furthermore, reducing TQQQ (Nasdaq 100 Leverage) and rotating funds into SOXL (Semiconductor Leverage) went beyond simple sector rotation.

As stated in the trading rationale at the time, the semiconductor index (SOXX) was significantly undervalued and had superior PEG levels compared to the underlying index (QQQ). Under the clear strategy of 'concentrating funds on AI Semiconductor Leverage (SOXL)', the attempt to capture semiconductor-specific gains rather than a broad Nasdaq rally was a massive success, coinciding with the surge in KOSPI semiconductor-related stocks.

Date	Type	Ticker	Qty	Price	Main Reason
2026-07-31	Buy	SOXL	1.57	$114.72	Semiconductor (SOXX) PEG 0.625, upside potential based on undervalued leverage
2026-07-31	Sell	TQQQ	0.30	$63.30	Undervaluation and growth superiority compared to Semiconductors (SOXL), capital shift
2026-07-31	Sell	META	0.11	$539.03	Sector rotation due to delayed AI monetization and intensifying ad competition
2026-07-31	Sell	SOXL	0.87	$114.72	Partial profit taking following surge and portfolio rebalancing
2026-07-24	Buy	SOXL	1.07	$157.50	Semiconductor sector strength and valuation undervaluation
2026-07-24	Sell	TQQQ	0.86	$66.30	Valuation superiority of semiconductors over Nasdaq

Conclusion: The Equation After a Surge

While the day's market surge is undoubtedly encouraging, it is also something to be wary of. The sharp rise in the won/dollar exchange rate and U.S. long-term interest rates are imposing a double burden of currency loss and valuation pressure on foreign investors. The 'AI Value Investment Portfolio' avoids these macro risks by holding stocks that have proven fundamental strength through practical indicators like PER and PEG.

However, the fact that volatility (VIX) actually fell after the short-term surge suggests that the market is undergoing a 'structural upward revaluation' rather than overheating. Moving forward, the process of 'selection and concentration' will continue: boldly reducing the weight of stocks that fail to gain momentum from valuation trends and concentrating resources on semiconductor value chains like Micron, where stock prices remain undervalued relative to growth. It is time to watch whether today's explosion will lead to the opening of a new valuation era rather than a temporary rally.

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