August 7 Investment Report: AI Value Investment Portfolio +54.7%

[Daily Market Insight]

As of August 6, 2026, the market appears to be taking a breather. While the KOSPI index experienced a sharp decline of over 4%, heightening investor caution, the US stock market also showed mixed performance, lacking a clear direction. However, amidst this volatility, the 'AI Value Investment Portfolio' has continued its robust upward trend, achieving an impressive return of 54.7% to date. The initial capital of $10,000 has now surpassed $15,000, demonstrating exceptional performance even in a challenging market environment.

Steady Performance Trend, Unwavering Gains

Over the past five trading days, this portfolio has consistently increased its asset value. Starting from $12 billion at the end of July, assets surpassed $13 billion by early August and exceeded $15.4 billion on August 5th, showing a clear upward trajectory. This is attributed to a focus on the portfolio's core value, rather than reacting to short-term market fluctuations. Despite investing all assets with zero cash allocation, this performance underscores the resilience of the investment strategy. While the USD/KRW exchange rate remained volatile around 1420 won and international oil prices saw a slight dip, suggesting some global economic concerns, these factors did not significantly impact the portfolio's returns.

Core Holdings: A Balance of Valuation and Growth

The primary drivers of this portfolio are concentrated in large-cap technology stocks related to AI and semiconductors, including NVIDIA (NVDA), AMD (AMD), and AVGO (Broadcom). For NVIDIA, with a current price of $211.94 and an Earnings Per Share (EPS) of $6.53, a Price-to-Earnings Ratio (PER) of 32.5x and a Price/Earnings to Growth (PEG) ratio of 0.57x indicate substantial remaining growth potential. AMD, though trading at a higher PER of 161.0x, shows potential for further upside with a PEG of 1.14x relative to its EPS of $3.22, considering its growth prospects. AVGO also presents an attractive valuation with a PER of 65.3x and a PEG of 0.44x.

Meanwhile, Micron (MU) is experiencing solid growth at a relatively lower valuation, with a PER of 18.8x and a PEG of 0.12x. Amazon (AMZN) is expected to show high growth with a PER of 21.3x and a PEG of 1.46x, although its valuation might be a slight concern. Meta (META) maintains a stable valuation at a PER of 20.9x and a PEG of 0.83x, despite concerns about market competition.

Leveraged products like TQQQ and SOXL are also contributing to the portfolio's returns. SOXL, trading at $139.90 with a PER of 23.8x and a PEG of 0.68x, effectively reflects the strength of the semiconductor sector. TQQQ, with a PER of 38.4x and a PEG of 1.49x, captures the broader rise in technology stocks.

Symbol	Quantity	Cost Basis	Current Price	PER	PEG	EPS
AVGO (Broadcom Inc.)	5.67 shares	$326.03	$418.16	65.3	0.44	$6.40
AMD (Advanced Micro Devices, Inc.)	7.17 shares	$198.62	$518.58	161.0	1.14	$3.22
MU (Micron Technology, Inc.)	0.25 shares	$996.00	$892.67	18.8	0.12	$47.58
NVDA (NVIDIA Corporation)	25.75 shares	$183.15	$211.94	32.5	0.57	$6.53
AMZN (Amazon.com, Inc.)	1.95 shares	$208.39	$277.42	21.3	1.46	$13.01
META (Meta Platforms, Inc.)	0.64 shares	$653.56	$587.94	20.9	0.83	$28.15
TQQQ (ProShares UltraPro QQQ)	1.70 shares	$76.34	$74.82	38.4	1.49	-
SOXL (Direxion Daily Semiconductor Bull 3X Shares)	18.93 shares	$71.22	$139.90	23.8	0.68	-

Strategic Trading: Seizing Opportunities

Recent trading activity demonstrates the portfolio's continuous effort to capture optimal investment opportunities by analyzing market valuations and growth potential. A prime example is the decision at the end of July to increase SOXL allocation, based on the assessment that the semiconductor sector was significantly undervalued relative to its forward PEG ratio, while selling some TQQQ and Meta to reallocate funds. The subsequent repurchase of SOXL after some profit-taking due to the semiconductor sector's surge signals confidence in the ongoing upward trend of this sector. Earlier in July, reducing Meta and TQQQ positions to shift capital to high-growth sectors like SOXL further illustrates the ability to flexibly adjust the portfolio according to market conditions.

Date	Type	Symbol	Quantity	Price	Reason
2026-07-31	Buy	SOXL	1.57 shares	$114.72	Semiconductor (SOXX) significantly undervalued at PEG 0.625 compared to forward PEG (1.54), indicating substantial upside potential through leverage.
2026-07-31	Sell	TQQQ	0.30 shares	$63.30	Reallocating funds to AI semiconductor leverage (SOXL) due to significant undervaluation and superior growth of the semiconductor index (SOXX) compared to the underlying index (QQQ).
2026-07-31	Sell	META	0.11 shares	$539.03	Rotation to AI/Semiconductor sectors with higher growth potential due to concerns over intensifying competition in advertising revenue and delayed AI monetization, alongside a high dividend payout ratio.
2026-07-31	Sell	SOXL	0.87 shares	$114.72	Partial profit-taking due to the rapid surge in the semiconductor sector and portfolio rebalancing.
2026-07-24	Buy	SOXL	1.07 shares	$157.50	Maximizing leverage returns due to significant undervaluation of the underlying asset (SOXX) with a PEG of 0.81 compared to the forward PEG of 1.46. Continued strength in the semiconductor sector.
2026-07-24	Sell	META	0.13 shares	$606.10	Reduced position due to concerns over intensifying competition in the advertising market and delayed AI monetization. Sector rotation towards high-growth sectors.
2026-07-24	Sell	TQQQ	0.86 shares	$66.30	Fund reallocation due to superior valuation and growth of semiconductors (SOXL) compared to Nasdaq. Weakening momentum and sector rotation.
2026-07-17	Sell	META	0.05 shares	$664.54	Portfolio risk management due to increased daily volatility and concerns over intensifying competition in advertising revenue.
2026-07-10	Buy	TQQQ	2.86 shares	$76.34	Aggressively capturing further upside in the Nasdaq index amid continued strength in large-cap tech stocks.
2026-07-10	Sell	SOXL	0.86 shares	$192.45	Partial profit-taking after a short-term surge and portfolio volatility adjustment.

Market Outlook: Continued Growth Expected in the AI Ecosystem

The current market may experience short-term volatility due to various factors, including the Fed's monetary policy and geopolitical risks. However, the advancement of AI technology and the expansion of its industrial ecosystem are unstoppable trends. The semiconductor sector, in particular, plays a crucial role in AI computation and is securing continuous growth momentum. This portfolio will continue to allocate assets strategically, focusing on stocks that offer both valuation appeal and growth potential within this macroeconomic trend. While rising gold futures prices and modest gains in Bitcoin and Ethereum reflect some preference for safe-haven assets, investor sentiment towards AI technology stocks remains robust. Moving forward, this portfolio will continue to capture market opportunities through data-driven, rational analysis and strategic decision-making.

※ This report analyzes the simulated performance of the AI Value Investment Portfolio and is not investment advice. Actual investments should be made at your own discretion and risk.