September 20 Investment Report: AI Value Investing Portfolio +50.6%

Semiconductor Surge Puts KOSPI Within Sight of 6,900 as 'AI Value Investing Portfolio' Tops 50% Returns

Overnight on the 20th, U.S. markets extended their rally as the Philadelphia Semiconductor Index surged 2.78%, and the rebound rippled into Asia, sending the KOSPI up 2.66% intraday to the doorstep of 6,900. Riding the global semiconductor supercycle, the AI Value Investing Portfolio also recorded a cumulative return of 50.57% on its initial $10,000 capital, lifting total assets to $15,057 — an all-time high.

A New High in Five Days: The Payoff of a Concentrated Semiconductor Bet

Over the past five days, the portfolio has traced a flawless upward curve. After peaking at $14,987 on the 14th, assets dipped modestly to $14,186 between the 15th and 17th, then jumped roughly 4.5% in a single day on the 18th to refresh its record high at $15,057. The concentrated bet that stayed steady through the correction — trusting in the semiconductor supercycle — has paid off once again.

Holdings Check

The valuations of the portfolio's twin pillars, NVIDIA and Micron, are worth noting. NVIDIA's PEG ratio — which measures price relative to growth — stands at 0.45, well below 1, suggesting the market has not yet fully priced in the durability of AI chip demand. Micron, with a PEG of 0.14 and a P/E of just 22x, appears markedly undervalued against memory-driven earnings per share in the $44 range. AMD, meanwhile, trades at a P/E of 139x, but its PEG of 0.52 offsets the burden as long as high growth persists. Intel, still shy of returning to profitability, remains a test of confidence in its recovery momentum.

Less Leverage, More Undervalued Single Stocks

A consistent principle runs through recent trading activity. On the 18th, the portfolio sold part of its SOXL position — a 3x leveraged product — to raise cash, then added to Micron, which offers compelling value within the same sector. The move maintained conviction in the sector's direction while trimming leverage exposure and shifting the weight toward undervalued individual stocks relative to growth. It is a pattern repeated since mid-August: a hedge-like strategy of managing risk by realizing profits regularly even as the rally continues.

A Shadow Behind the Celebration: Crude Oil Plunge and Rates Approaching 5%

Yet there are variables beneath the festivities. West Texas Intermediate (WTI) crude plunged 5.72% in a single day, exposing demand concerns, while the U.S. 10-year Treasury yield climbed to 4.998% — a hair's breadth from the 5% mark. The won-dollar exchange rate also rose to 1,385 won. Prolonged high rates could weigh on growth stock valuations — a clear risk. Fortunately, the volatility index (VIX) remains in stable territory at 14.81, suggesting the risk-on trend should hold for now. As this portfolio has already demonstrated, the balanced discipline of pairing profit-taking with rotation into undervalued names will be the survival strategy for the later stages of the rally.

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