Unshaken by the AI Slump... Investment Report Defends 64.31% Return

[Daily Market Insight] 'Conviction in Value' Amid the AI Stock Plunge — Portfolio Stands Firm Through KOSPI's 2.6% Crash

Seoul's stock market was cold on the morning of the 10th. The KOSPI crumbled by 177.97 points in a single day, plunging 2.62%, while the KOSPI 200 also fell 2.71% in what amounted to a broad-based selloff. Across the Atlantic, however, the temperature on Wall Street was markedly different. The S&P 500 rose 0.59% and the Dow Jones gained 0.83%, leaving room for a rebound, while the VIX eased 3.7% — a sign that fear may prove only momentary. Amid these market swings, the AI value-investing portfolio held onto a 64.31% return on initial capital, preserving total assets of $16,431. Although assets shrank by nearly 4.2% in a single day, this was a wave within the current — not the current itself.

Trimmed Gains, But an Unbroken Framework

The asset flow over the past five days shows a rally that climbed from $16,951 on the 5th to $17,316 on the 7th, before turning lower from the 8th and settling at the current $16,431. Roughly $900 in equity value evaporated over just a few days. What matters is the quality of this decline. Since semiconductor leveraged ETF SOXL and triple-leveraged Nasdaq ETF TQQQ were core momentum assets, wider losses during a correction phase were somewhat anticipated. The key point is that cumulative returns have stayed in the 60% range despite accepting short-term drawdowns — evidence that the strategy's foundation, a composition centered on assets undervalued relative to growth, remains valid.

Holdings Check: Dazzling Highs and Steady Valuations

The portfolio's two pillars present a striking contrast. Micron, with EPS of $74.33 and a current price of $1,035.84, trades at a mere 13.9x PER with a PEG of 0.16 — an extremely undervalued range. Combined with momentum from HBM4 supply price hikes, it is seen as the biggest beneficiary of the 'memory supercycle' narrative. Nvidia, at a 29.1x PER and PEG of 0.29, does not carry an excessive valuation burden relative to its growth rate. AMD, by contrast, carries a steep 158.3x PER. While its PEG of 0.65 partially reflects growth expectations, it is the holding most vulnerable in a correction. Intel remains loss-making per share with a PEG of 1.36, making it less attractive; the pace of improvement in its turnaround financial structure is the key variable.

Ticker	Shares	Purchase Price	Current Price	PER
Nvidia	26.59 shares	$184.21	$230.48	29.1
AMD	7.17 shares	$198.62	$620.68	158.3
Broadcom	5.67 shares	$326.03	$360.14	46.0
SOXL	13.92 shares	$71.22	$142.52	-
Micron	0.52 shares	$997.21	$1,035.84	13.9
TQQQ	1.13 shares	$76.34	$80.23	-
Intel	2.80 shares	$104.56	$107.08	Loss-making
Amazon	1.95 shares	$208.39	$254.06	20.4
Meta	0.55 shares	$653.56	$720.89	27.2

Recent Trades Review: Unassuming 'Staggered Buying' in a Slump

The previous day's trades illustrate this strategy's principles well. A small additional purchase of Micron at $1,035.84 upheld the principle that 'a crash is an opportunity to buy in stages at lower prices,' while a partial sale of SOXL — whose volatility rose with the semiconductor index plunge — locked in gains, and trimming TQQQ secured cash reserves. This is a rotation that reduces leveraged exposure within the same sector and shifts funds into individual stocks with more attractive valuations. In times of crisis, the principle of 'buying better things cheaper' is operating without being mechanical.

Date	Type	Ticker	Shares	Price
2026-10-09	Buy	Micron	0.11 shares	$1,035.84
2026-10-09	Sell	TQQQ	0.06 shares	$80.23
2026-10-09	Sell	SOXL	0.73 shares	$142.52
2026-09-18	Buy	Micron	0.19 shares	$977.50
2026-09-18	Sell	SOXL	0.77 shares	$114.82
2026-08-28	Sell	SOXL	0.81 shares	$123.05
2026-08-21	Buy	Nvidia	0.84 shares	$216.85
2026-08-21	Sell	Meta	0.10 shares	$545.83
2026-08-21	Sell	Micron	0.03 shares	$974.33
2026-08-21	Sell	SOXL	0.85 shares	$122.21

Market Outlook: The Questions Posed by Exchange Rates and Rates

The won-dollar exchange rate slipped slightly to 1,340.9, easing concerns about foreign capital outflows, but the US 10-year Treasury yield holding at 5.244% — near historic highs — remains a risk factor. In a high-rate environment, corrections in growth stocks with demanding valuations could recur. That said, with oil prices edging up and gold futures rising 1.43% to break above the $4,200 level, there are signals that inflation-hedging demand remains alive. Even if short-term corrections continue, the memory supply-demand structure and the AI infrastructure investment cycle remain solid, so restraining leveraged positions while taking a staggered approach to undervalued stocks by PEG criteria is judged to be an effective response.

※ This report analyzes the simulated operation of the AI value-investing portfolio and is not investment advice. Actual investment decisions should be made at your own judgment and responsibility.