Won Weakness and AI Semiconductors Drive Investment Report to 49% Cumulative Returns

KOSPI Surges 6%… The 49% Return Myth Created by the Momentum of Won Weakness and AI Semiconductors

At 2:00 AM on August 20, 2026, the South Korean market is boiling with enormous upward momentum. The KOSPI skyrocketed by over 6% during the session, touching the 6,800 mark, while the KOSDAQ is also recording strong gains in the 2% range. This surge reflects the flow of global liquidity into the country as the Won/Dollar exchange rate dropped to 1,394 Won. With US bond yields stabilizing and Bitcoin surging over 7%, a 'Risk-On' mode has been activated. In this environment, the **AI Value Investing Portfolio** has recorded a remarkable cumulative return of 49.45%, proving the victory of an investment strategy that combines valuation and momentum.

The Aesthetics of Surging Assets and Cold-Blooded Rebalancing

The portfolio has seen assets fluctuate recently, moving from $15,520 to a high of $15,750 over the past five days, currently sitting at $14,944. This indicates significant volatility in individual holdings. The sharp drop in total portfolio assets on August 19 alone was due to a temporary adjustment in the semiconductor sector, as the Philadelphia Semiconductor Index (SOX) fell over 2%. Despite this, the portfolio maintains returns approaching half of its initial capital. This is not merely a result of 'holding', but the outcome of constant sector rotation and profit-taking utilizing valuation gaps.

Value of Core Holdings via Valuation Metrics

Major holdings within the portfolio are strictly managed using two key metrics: PER (Price-to-Earnings Ratio) and PEG (Price/Earnings-to-Growth Ratio). Nvidia (NVDA) and Broadcom (AVGO) continue to maintain strong upward momentum. In particular, AVGO is assessed as an attractive 'growth value' stock; while a conservative interpretation puts its PER at 63.3x, its PEG ratio stands at 0.44, suggesting the stock's price rise is far lagging its earnings growth speed.

For Micron (MU), the PER is relatively low at 21.3x and the PEG is a mere 0.14, leading to analysis that the current price severely undervalues future growth potential. Conversely, AMD's PER has soared to 123.6x with a PEG of 1.1, suggesting valuations have reached a burdensome level relative to growth. This indicates it is an asset to be monitored for overheating while still following the trend.

Ticker	Qty	Avg Price	Current Price	PER
Nvidia (NVDA)	25.76	$183.15	$219.74	33.7
Broadcom (AVGO)	5.67	$326.03	$380.00	63.3
AMD (AMD)	7.17	$198.62	$484.39	123.6
Micron (MU)	0.25	$996.00	$940.76	21.3
Amazon (AMZN)	1.95	$208.39	$259.45	20.9
Meta (META)	0.64	$653.56	$543.67	20.5
TQQQ	1.19	$76.34	$72.53	33.0
SOXL	17.09	$71.22	$129.10	45.5
Intel (INTC)	2.80	$104.56	$96.69	N/A

The Art of Profit Taking and Aggressive Buying

Recent trading history confirms a mix of valuation-based 'micro-trading' and 'sector rotation'. In late July and early August, the portfolio adjusted its exposure to Nasdaq leverage (TQQQ) and semiconductor leverage (SOXL) to target valuation advantages in the semiconductor index (SOXX). Specifically, for SOXL, the weight was aggressively increased when the underlying asset's PEG fell significantly below market fair values (0.6-0.8 range), while risks were hedged by selling in tranches when the stock price surged.

The most striking move was the buy order for Intel (INTC) on August 14. At the time, Intel had a low PEG and momentum was building, but with a PER of 51x, it was determined that growth was not yet fully priced in. Based on expectations for AI supply chain recovery, an aggressive entry was made. Conversely, Meta (META) saw its weight reduced as funds were moved to the high-growth AI/semiconductor sector, amid concerns over intensifying ad revenue competition and delays in AI monetization.

Date	Type	Symbol	Qty	Price
2026-08-14	Buy	Intel (INTC)	2.80	$104.56
2026-08-14	Sell	SOXL	0.90	$145.36
2026-08-07	Sell	SOXL	0.95	$132.33
2026-08-07	Sell	TQQQ	0.51	$72.03
2026-07-31	Buy	SOXL	1.57	$114.72
2026-07-31	Sell	TQQQ	0.30	$63.30
2026-07-31	Sell	META	0.11	$539.03

[Market Insight] Liquidity Flow Following Valuation Trends

Market conditions, with Gold futures surging over 4% and Bitcoin rising nearly 8%, suggest an asset price rise phase closer to 'Reflation' than 'Deflation'. The stabilization of US 10-year Treasury yields in the 4.6% range is also a positive for high-dividend growth stocks and tech stocks. Currently, the **AI Value Investing Portfolio** is concentrated on 'undervalued growth stocks' in the semiconductor sector. If the KOSPI strength and Won weakness continue, the export-oriented Korean market appears to have sufficient room for further upside on the back of semiconductor momentum. However, as seen in the temporary adjustment of the Philadelphia Semiconductor Index, volatility in leverage portfolios remains high, so preventing overheating via PEG indicators will be the key to sustaining returns.

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