August 18 Investment Report: AI Value Investment Portfolio +57.1%

New York Theme Stocks vs. Seoul Value Stocks: The 'Reverse Arbitrage' Battle

On August 17, 2026, the global financial market displayed two contrasting faces. While New York's Wall Street (S&P 500, Nasdaq) ended lower due to rising U.S. bond yields and a surge in the VIX (fear index), the Seoul KOSPI staged a strong rebound of over 2%, showcasing the potential of 'K-Valuation.' Amid these waves of volatility, the 'AI Value Investment Portfolio' recorded a cumulative return of 57.09% and total assets of $15,709, continuing its steady upward trajectory through sophisticated sector rotation focused on semiconductors and themes.

The 'Swing' Between Growth and Value Creates a Yield Curve

Over the past 5 days ($15,096 → $15,709), this portfolio engaged in intense 'position restructuring' to mitigate volatility and optimize capital efficiency. Rather than simply drawing a smooth upward curve, the strategy involved adjusting the weight of leverage products (TQQQ, SOXL) according to index movements, realizing profits, and reinvesting them into repurchasing individual stocks. Notably, the decision to reduce TQQQ exposure and concentrate funds on SOXL and individual semiconductor stocks—judging that the semiconductor index offered a valuation advantage over the Nasdaq—proved effective in capturing the recent surge in momentum.

Valuation Indicators Reveal 'Mega Tech' Fundamentals

The valuations of currently held assets show a unique distribution where high PERs, typical of high-growth companies, coexist with low PEG ratios. NVIDIA (PER 34.5, PEG 0.62) and Broadcom (PER 65.4, PEG 0.44) have high absolute PER figures, but their PEG indicators remain below 1, suggesting they are still attractive when growth is considered. This implies that while the market has priced in their future growth to some extent, these stocks are still trading at a discount.

Meanwhile, Intel (INTC) saw buying for three consecutive days. Although its PEG of 1.36 suggests lower growth potential compared to NVIDIA or Broadcom, the position was actively increased based on the judgment that there is room for further upside at a forward PE (fwdPE) of 51x, reflecting recent momentum and expectations for AI supply chain recovery. This appears to be a re-evaluation of Intel's value as an alternative to NVIDIA amidst shifting semiconductor architecture.

Asset	Qty	Avg Price	Current Price	PER	PEG
NVIDIA (NVDA)	25.76	$183.15	$225.16	34.5	0.62
AMD	7.17	$198.62	$514.39	131.6	1.10
Micron (MU)	0.25	$996.00	$971.66	22.0	0.14
Broadcom (AVGO)	5.67	$326.03	$392.99	65.4	0.44
Intel (INTC)	2.80	$104.56	$102.50	N/A	1.36
Amazon (AMZN)	1.95	$208.39	$262.65	21.1	1.40
Meta (META)	0.64	$653.56	$589.85	22.2	0.88
SOXL	17.09	$71.22	$144.95	51.1	0.62
TQQQ	1.19	$76.34	$76.79	35.0	1.21

Speed of Sector Rotation: AI Concentration and Risk Management

A closer look at recent trading history reveals a clear criterion: 'sector rotation.' The massive liquidation of Meta (META) holdings that began in late July was a move to reallocate capital to the AI/semiconductor sector, where growth is more evident, driven by concerns over intensifying ad market competition and delayed AI monetization. Additionally, on August 7th and 14th, positions in SOXL were trimmed or TQQQ was sold to reallocate funds into individual stocks like Intel.

This is not simply about tracking indices; it is a strategy to maximize leverage effects based on a fundamental analysis that the semiconductor index (SOXX) is undervalued compared to the Nasdaq (QQQ), with a PEG in the 0.6 range. The decision to buy more Intel while selling a small amount of SOXL on August 14 is interpreted as an attempt to capture 'alpha (excess returns)' from individual companies within the semiconductor sector.

Date	Type	Asset	Qty	Price	Reason
2026-08-14	Buy	Intel (INTC)	2.80	$104.56	Expectations for AI supply chain recovery & judgment of upside potential due to fwdPE 51x despite growth not being reflected in PEG 1.36
2026-08-14	Sell	SOXL	0.90	$145.36	Portfolio risk management & reallocation to surging individual stocks (e.g., INTC)
2026-08-07	Sell	TQQQ	0.51	$72.03	Reallocation due to semiconductor valuation advantage
2026-07-31	Buy	SOXL	1.57	$114.72	Leverage upside potential due to Semiconductor (SOXX) PEG 0.625 being undervalued vs. fair PEG
2026-07-31	Sell	Meta (META)	0.11	$539.03	Intensifying ad revenue competition & delayed AI monetization; sector rotation to growth
2026-07-24	Sell	Meta (META)	0.13	$606.10	Sector rotation to high-growth sector

Crossing the Sea of Volatility with 'Earnings' as the Sail

On the day, risk-off flows were detected as U.S. 10-year Treasury yields rose to 4.724% and the VIX surged by 6.6%. However, the simultaneous rise in gold futures (+2.06%) and oil prices (+3.0%+) suggests embedded inflation concerns and geopolitical risks, indicating that stock market volatility may persist for the time being.

However, the 'AI Value Investment Portfolio' continues to pursue the essence of corporate value based on valuation metrics (EPS, PER, PEG), regardless of these external variables. In particular, the portfolio's composition, centered on semiconductors with low PEG ratios despite high PERs, is predicated on the logic that growth rates outpace discount rates in the current interest rate environment. The high yield serves as evidence that a steadfast value-oriented approach within the massive theme of AI has turned volatility into an opportunity.

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