AI Value Investing Portfolio Hits 50% Return Amid Semiconductor Headwinds

[Daily Market Insights] 'AI Value Investing Portfolio' Smiles Through Semiconductor Headwinds, Enters the 50% Return Club

On the 16th (local time), the U.S. market was hit by strong headwinds, with the Nasdaq falling more than 2% and the Philadelphia Semiconductor Index plunging nearly 4%. The Volatility Index (VIX) surged 21% in a single day, laying bare investors' anxiety. Seoul's market, however, told a very different story: the KOSPI surged over 2% and the KOSDAQ jumped more than 4%. Amid these divergent trends, the 'AI Value Investing Portfolio' has defended a cumulative return of roughly 50% on its initial capital of $10,000, proving its resilience through this volatile phase.

Pulled Back From Its Peak, But a Manageable Drawdown

The portfolio's assets peaked at $16,284 on the 12th before retreating to the $15,000 level just three days later. With heavy exposure to leveraged semiconductor products and memory stocks, the portfolio was structurally vulnerable to a sharp selloff. Even so, the drawdown was limited to around 8%, the result of a trading discipline of repeatedly taking profits during each correction phase before the crash. The cumulative return still stands at +49.95%, having grown assets by half in less than a year.

Holdings Check: Undervalued Memory Names Provide the Anchor

Stock	Shares	Purchase Price	Current Price	P/E
NVIDIA	25.3 shares	$184.21	$217.23	27.5
Micron	0.8 shares	$972.67	$931.24	12.5
AMD	7.2 shares	$198.62	$562.23	143.4
Broadcom	5.7 shares	$326.03	$344.33	45.4
Intel	2.8 shares	$104.56	$95.37	—
Meta Platforms	0.5 shares	$653.56	$736.72	27.8
Amazon	2.0 shares	$208.39	$254.76	20.5
SOXL	13.9 shares	$71.22	$107.35	—
TQQQ	1.1 shares	$76.34	$73.82	—

Micron stands out. With a P/E in the low teens and a PEG ratio of just 0.16, it trades well below the market's fair value. With the memory supercycle thesis — including HBM4 price hikes — still intact, the pullback reads as a buying opportunity on a split-purchase basis. NVIDIA, too, has room despite valuation controversies, trading at 27 times earnings with a growth-adjusted value of 0.27. AMD, by contrast, carries a burdensome P/E of 143, meaning even a continued rally could see valuation pressure amplify return volatility — a risk to watch.

Trade Review: Position Sizing Was the Answer

Date	Type	Stock	Shares	Price
2026-10-16	Buy	Micron	0.3 shares	$931.24
2026-10-16	Sell	NVIDIA	1.3 shares	$217.23
2026-10-09	Buy	Micron	0.1 shares	$1035.84
2026-10-09	Sell	TQQQ	0.1 shares	$80.23
2026-10-09	Sell	SOXL	0.7 shares	$142.52
2026-09-18	Buy	Micron	0.2 shares	$977.50
2026-09-18	Sell	SOXL	0.8 shares	$114.82
2026-08-28	Sell	SOXL	0.8 shares	$123.05

The key to recent trades was clearly position management. When NVIDIA's share of the portfolio grew to 38%, raising concentration risk, part of the position was sold and the proceeds rotated into Micron and leveraged semiconductor index products. Since the rotation occurred within the same sector, the outcomes look similar, but the guiding principle — shifting weight toward names with more attractive growth-adjusted value — has been consistently maintained. Liquidating leveraged products first in each downturn to shore up defenses follows the same logic.

Outlook: The Challenge Posed by Rates and Volatility

With the U.S. 10-year Treasury yield climbing above 5% and weighing on growth stock valuations, the VIX spike signals an entry into a phase of expanded short-term volatility. The semiconductor index's plunge could be a short-term headwind for this portfolio, but the fundamentals — memory earnings momentum and low growth-adjusted valuations — remain intact. The exchange rate has also stabilized below the 1,330-won level, laying the groundwork for a weaker dollar and stronger won-denominated asset returns. If the disciplined trading of spotting buying opportunities in sharp selloffs continues, this correction is likely to prove an interim pause rather than the end of the trend.

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