October 20 Investment Report: AI Value Investing Portfolio +43.1%

[Daily Market Insights] +43% Returns Amid Semiconductor Strength—A Five-Day Pullback Signals 'Overheating Warning'

On the 19th, the KOSPI surged 1.76% to recover the 5,768 level, while the Nasdaq and the Philadelphia Semiconductor Index each climbed more than 1%, extending a semiconductor-led rally. Against this backdrop, the AI Value Investing Portfolio recorded total assets of $14,308 and a return of +43.08%, maintaining solid performance relative to the market. That said, the portfolio has retreated about 10% from its peak above the $16,000 mark over the past five trading sessions, showing that selling at highs and profit-taking are putting pressure on liquidity supply and demand.

Five-Day Asset Trend: Hitting a Peak and Entering a Correction

The asset curve shows the portfolio peaked at $15,885 on the 13th and $16,020 on the 14th, then steadily shed roughly $500 a day, falling to $15,219 on the 15th, $14,995 on the 16th, and $14,308 on the 19th. This suggests that the results of months of concentrated investment in the semiconductor and AI sectors have been substantially realized, and that the portfolio has entered a full-scale reallocation phase. The won-dollar exchange rate held steady at 1,333 won, while the VIX plunged 7.75% to 18.44, indicating a modest cooling of market fear.

Holdings Diagnosis: The Dual Face of Valuation

The portfolio is concentrated in semiconductor and AI-related stocks. Nvidia, with a P/E of 27 and a PEG ratio of just 0.26 relative to its growth, is still assessed as reasonably priced. Micron, at a P/E of 11.8 and a PEG of 0.16, stands out as the most undervalued segment when factoring in the memory supercycle benefits. AMD's P/E of 134.9 is high, but a PEG of 0.53 suggests the structure prices in strong growth. Intel, meanwhile, posts negative EPS, making an earnings recovery the key issue, while leveraged products such as SOXL and TQQQ inevitably react sharply to short-term volatility.

Stock	Quantity	Purchase Price	Current Price	P/E
Broadcom	5.67 shares	$326.03	$328.75	42.0
AMD	7.17 shares	$198.62	$528.75	134.9
Amazon	1.95 shares	$208.39	$250.00	20.1
Intel	2.80 shares	$104.56	$89.85	-
Meta	0.55 shares	$653.56	$709.33	26.7
SOXL	13.92 shares	$71.22	$93.67	21.2
TQQQ	1.13 shares	$76.34	$68.21	27.7
Nvidia	25.26 shares	$184.21	$214.13	27.1
Micron	0.83 shares	$972.67	$878.84	11.8

Recent Trade Review: Profit-Taking and Reallocation to Undervalued Names

The core of recent trading was a reduction in the Nvidia position. On the 16th, when the single-stock weighting had reached 38%, part of the position was sold at $217 and the proceeds rotated into undervalued Micron and SOXL within the same sector. This is a balanced approach that diversifies risk in overheated territory while maintaining growth-stock exposure. Micron was purchased in two tranches on the 9th and 16th, backed by expectations of rising HBM4 supply prices and a sustained memory cycle. TQQQ was partially trimmed to reduce the leveraged exposure.

Date	Type	Stock	Quantity	Price
2026-10-16	Buy	Micron	0.31 shares	$931.24
2026-10-16	Sell	Nvidia	1.33 shares	$217.23
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

Market Outlook: A Selective Approach Needed Amid Rate Burdens

With the U.S. 10-year Treasury yield topping 5.1%, the valuation burden on growth stocks remains. WTI crude plunged 3% in a single day but still sits around $98, leaving inflationary pressure intact. Bitcoin slipped slightly near $82,000, showing no clear preference for risk assets. On the positive side, the VIX has entered stable territory and the semiconductor index has turned upward. Going forward, selective buying centered on high-growth, undervalued names is expected to be effective, with Intel's potential earnings turnaround and memory price trends set to define the next phase.

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