Amid Semiconductor Tailwinds, Cumulative Return Hits 43.19%... Investment Report

Semiconductor Tailwinds Push KOSPI Past 6,000, Portfolio Hits All-Time High

On the morning of October 28, 2026, the market climbed aboard the rally with barely a moment to catch its breath. The KOSPI surged 6.63% in a single day, closing above the 6,000 mark for the first time in history. The KOSDAQ added 3.69% to lend support, and after the Philadelphia Semiconductor Index jumped 3.60%, the Nasdaq cruised higher by more than 1% — all of which fueled the explosive strength in the Korean market. The AI value investing portfolio rode this wave to record total assets of $14,318.81, posting a cumulative return of +43.19% and securing its best performance ever.

Steady Cumulative Growth Amid Liquidity Flows

A look at the portfolio's asset trajectory shows this result was not made in a single day of euphoria. After surging from $14,534 on the 21st to $14,923 on the 22nd, it swung sharply down to $13,853 on the 23rd — but two consecutive days of gains on the 26th and 27th fully recovered the losses and pushed it to a new high. What is somewhat peculiar is that the won/dollar exchange rate has continued climbing to 1,339 won, signaling a weak won. Typically, when a rally is driven by foreign buying, the exchange rate does not rise alongside it — suggesting the market has entered a classic 'recovery rally' phase where export stock revaluation and capital inflows are working simultaneously.

Undervalued Semiconductors: The Real Engine of Returns

Examining the holdings, it is no exaggeration to say that the success of this strategy hinged on judgment about the semiconductor group. Micron was repeatedly bought in tranches on the view that, with a forward PER in the 12x range and a PEG of just 0.16, its price was extremely compressed relative to growth. AMD, meanwhile, looks expensive at a 135x PER, but its growth-adjusted PEG of around 0.5 justified continued holding on the grounds that it remains reasonably priced. NVIDIA, by contrast, still trades at an attractive valuation with a 27x PER and 0.26 PEG, but as its single-stock weight grew excessive, risk was managed by realizing part of the gains. Not mega-cap tech names like Tesla or Apple, but a rigorously screened selection based purely on 'price relative to growth' — and the 43% return is the proof.

A Reallocation, Not a Raid on Undervalued Shares

Looking back at recent trades, the core of this strategy was rotational reallocation within the sector. On September 18, proceeds from partially selling SOXL, a 3x leveraged product, were used to add to Micron, and through October the same pattern was repeated — taking profits on NVIDIA and AMD and recycling the funds back into Micron. In particular, the decision to interpret the moment when Micron's forward PER fell into the 4x range as 'a sharp drop is a buying opportunity' required tolerating mark-to-market losses in the short term, but can be judged rational as long as the structural growth story of the HBM and memory supercycle remains intact.

Ticker	Quantity	Purchase Price	Current Price	PER
NVIDIA	24.00 shares	$184.21	$216.00	27.3
Micron	1.30 shares	$930.96	$903.70	12.2
AMD	6.82 shares	$198.62	$531.28	135.5
Broadcom	5.67 shares	$326.03	$329.17	42.0
Amazon	1.95 shares	$208.39	$249.09	20.0
Meta	0.55 shares	$653.56	$630.56	21.5
Intel	2.80 shares	$104.56	$90.47	-
SOXL	13.92 shares	$71.22	$90.50	20.4
TQQQ	1.13 shares	$76.34	$68.43	27.8

Date	Type	Ticker	Quantity	Price
2026-10-23	Buy	Micron	0.47 shares	$856.49
2026-10-23	Sell	NVIDIA	1.26 shares	$212.21
2026-10-23	Sell	AMD	0.36 shares	$507.93
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	$1035.84
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

Exchange Rates and Oil Prices: The Variables Still Matter

Two factors will largely shape the market ahead. First, the won/dollar rate has risen to 1,339 won and the weak won persists — a tailwind for export stocks, but a potential drag on the sustainability of foreign capital inflows. Second, the U.S. 10-year Treasury yield is approaching 5%, capping upside for growth stock valuations. That said, with the VIX holding steady at 17.51 and Nasdaq 100 futures continuing to climb, short-term momentum remains alive. As long as the AI infrastructure investment cycle does not stall, this portfolio strategy centered on semiconductors undervalued relative to growth should remain valid for the time being. That said, with returns already well past 40%, a measured appetite for profit-taking will be the key to preparing for the next phase.

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