Investment Report Logs 45% Return for AI Portfolio Amid Bitcoin Surge

Bitcoin's Wild Ride, and the Afterglow of AI Growth... The Market of August 2026

August 22, 2026. The pre-dawn financial markets are fluid like liquid. While New York oil holds the $87 mark, showing warmth in the commodities market, the crypto market is breathing heat, with Bitcoin jumping over 7%. Meanwhile, the bond market reminds us that the 'new normal' of high interest rates has settled in, with the 10-year U.S. Treasury yield eyeing 4.7%. Amidst these turbulent currents, the 'AI Value Investing Portfolio' has maintained a solid trend, preserving a gain of over 45% against initial capital, despite lingering effects of profit-taking after hitting a peak (approx. $15,700) on August 17.

Tightrope Walk Between Soaring Momentum and Valuation

The asset flow over the last 5 days blatantly exposes the 'dynamic' nature of this strategy. Between the 17th and 18th, assets swelled rapidly as semiconductor and AI themes exploded, but from the 19th to the 21st, the portfolio absorbed market volatility by adjusting the weight of holdings. Total assets currently stand at approx. $14,550, and core holdings like Nvidia (NVDA) and Broadcom (AVGO) are maintaining their uptrend lines, keeping defensive concerns low.

While Nvidia and Broadcom are showing somewhat high forward P/E ratios relative to current stock prices, their PEG ratios are recording levels in the 0.6s and 0.4s, respectively, reflecting expectations that EPS growth will outpace current valuations. This indicates market sentiment that goes beyond simple overvaluation fears, showing confidence in the sustained demand for AI chips. In contrast, Intel (INTC) has been moving sideways since the recent buy, but expectations that operating profit will turn positive over the next year are forming a PEG of 1.36, keeping it in the undervalued territory.

Holding Diagnosis: The Intersection of Growth and Value

A look at the valuation of major holdings reveals interesting contrasts. AMD and Amazon (AMZN) have P/E ratios over 100x and in the high 20s, respectively, meaning the market clearly classifies them as 'growth stocks.' AMD's PEG is exactly 1.0, suggesting its current price is in perfect balance with future growth. Meanwhile, Meta (META) and Micron (MU) have PEG ratios below 1 despite stable P/E ratios in the low-to-mid 20s, hinting that future performance growth could be a strong catalyst for stock price increases.

For the leveraged ETFs TQQQ and SOXL, it is appropriate to interpret them not through simple P/E indicators, but as 'derivatives' representing the flow of their underlying indices, the Nasdaq 100 and the Semiconductor Index. SOXL's PEG of 0.59 proves that the valuation of its underlying asset, the semiconductor sector, remains attractive.

Asset	Qty	Bought At	Current	P/E
Nvidia (NVDA)	26.59 shares	$184.21	$216.85	33.2
Broadcom (AVGO)	5.67 shares	$326.03	$364.03	60.6
AMD	7.17 shares	$198.62	$469.46	119.2
Amazon (AMZN)	1.95 shares	$208.39	$260.11	20.9
Micron (MU)	0.23 shares	$996.00	$974.33	21.2
Meta (META)	0.55 shares	$653.56	$545.83	20.6
TQQQ	1.19 shares	$76.34	$70.48	32.1
SOXL	16.23 shares	$71.22	$122.21	43.1
Intel (INTC)	2.80 shares	$104.56	$92.13	N/A

Strategic Review: Sector Rotation and Risk Management

A look at recent trading history reveals that the portfolio manager has been actively responding to guard against market overheating. On the 21st, the portfolio sold portions of Meta, Micron, and SOXL. The Meta sale appears to be part of sector rotation amid intensifying competition in the ad market, while profit-taking on the surged Micron and SOXL was aimed at building a 'firewall' within the portfolio rather than simply pocketing gains.

Simultaneously, the decision to buy more Nvidia is noteworthy. It was an aggressive buy targeting a window where the stock price was discounted relative to forward P/E, predicated on confidence in sustained AI chip demand. Additionally, the large-scale purchase of Intel on the 14th was a bet on the recovery of the AI supply chain, interpreted as an attempt to balance 'growth and value' between the high P/E Nvidia and low P/E Intel. This two-way trading is consistent with a flow that reduces Nasdaq leverage ETFs like TQQQ and concentrates funds on individual semiconductor stocks with valuation advantages.

Date	Type	Asset	Qty	Price
2026-08-21	Buy	Nvidia (NVDA)	0.84 shares	$216.85
2026-08-21	Sell	Meta (META)	0.10 shares	$545.83
2026-08-21	Sell	Micron (MU)	0.03 shares	$974.33
2026-08-21	Sell	SOXL	0.85 shares	$122.21
2026-08-14	Buy	Intel (INTC)	2.80 shares	$104.56
2026-08-14	Sell	SOXL	0.90 shares	$145.36
2026-08-07	Sell	SOXL	0.95 shares	$132.33
2026-08-07	Sell	TQQQ	0.51 shares	$72.03

Outlook: Chasing 'Undervalued Growth'

For the time being, the market will continue to walk a tightrope between the direction of the U.S. 10-year yield and the momentum of risk assets like Bitcoin. Although the Philadelphia Semiconductor Index (SOX) showed a slight correction, a clear downtrend in mid- to long-term P/E within the sector is not yet visible. The 'AI Value Investing Portfolio' has not secured cash assets through strategic adjustments, but it has shifted its center of gravity by lowering the weight of volatile leveraged ETFs and focusing on Nvidia, which offers solid growth, and undervalued plays like Intel and Micron.

In conclusion, the current portfolio structure is waiting for 'earnings' to catch up to 'stock price' within the mega-trend of AI, even if shaken by short-term volatility. Investors should keep an eye on the moment the gap between the P/E and PEG indicators narrows, ahead of the Fed's moves in September and the earnings season.

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