Investment Report Holds Firm at +43.19% Return Amid Shaky Asian Markets

Asian Markets Wobble, New York Stands Firm…An Uneasy Calm at +43.19%

On Wednesday morning of the last week of October, the Seoul stock market froze over. The KOSPI plunged 1.24%, leaving even the 5,900 mark in jeopardy, while the KOSDAQ tumbled more than 2.3%. The won/dollar exchange rate climbed to 1,337 won, fueling an outflow of foreign capital. Across the Pacific, however, New York told a different story. The Dow, S&P 500, and Nasdaq all closed slightly higher, with the Philadelphia Semiconductor Index rising 1.75% — a sign that the AI rally is far from over. Amid this East-West divergence, the AI value investing portfolio is holding a 43.19% return on its initial $10,000, standing at $14,318 in total assets. It looks calm on the surface, but a closer look at the asset trajectory reveals hot volatility beneath.

A Single Day of Plunges Carves a $1,000 Dip

The asset curve over the past five days was anything but smooth. Total assets, which had soared to $14,923 on October 22, evaporated by more than $1,000 in a single day to $13,853 on the 23rd. They then turned back to recovery within two days and now sit roughly 4% below the peak. This amplitude testifies to the portfolio's heavy weighting in the semiconductor and AI sectors. Leveraged products like SOXL and TQQQ rocket upward in bull markets but fall even harder in corrections. This is a phase that demands patience.

Holdings Check: The Case for Undervaluation Lies in Growth Rates

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

On the surface, AMD's price-to-earnings ratio of 135x is hard to justify. But its PEG ratio sits at around 0.5x — factoring in the pace of earnings growth the market expects, the stock actually reads as underbought. NVIDIA, too, trades at a P/E of 27x with a growth-adjusted valuation of 0.26x, an undemanding range for an AI leader. Micron, at a P/E of 12x and a PEG of 0.16x, is the portfolio's core undervaluation play, backed by surging HBM demand that is rapidly boosting earnings. Intel, by contrast, remains in the red and is down more than 13% from its purchase price, leaving recovery an open question. Amazon and Meta, with reasonable valuations around 20x, serve as the portfolio's defensive anchors.

Recent Trades: A Feel for Keeping the Center of Gravity

Date	Type	Stock	Shares	Price
2026-10-23	Buy	Micron	0.47	$856.49
2026-10-23	Sell	NVIDIA	1.26	$212.21
2026-10-23	Sell	AMD	0.36	$507.93
2026-10-16	Buy	Micron	0.31	$931.24
2026-10-16	Sell	NVIDIA	1.33	$217.23
2026-10-09	Buy	Micron	0.11	$1,035.84
2026-10-09	Sell	TQQQ	0.06	$80.23
2026-10-09	Sell	SOXL	0.73	$142.52
2026-09-18	Buy	Micron	0.19	$977.50
2026-09-18	Sell	SOXL	0.77	$114.82

The common thread in recent trades is clear: realizing gains by trimming AMD — up 155% — and NVIDIA, whose weight had swelled to 38%, and rotating those proceeds into Micron, a relatively underpriced name within the same AI semiconductor value chain. Adding to positions in tranches on every sharp selloff is another hallmark. Meanwhile, steadily reducing exposure to the 3x leveraged SOXL and TQQQ amid Nasdaq correction concerns signals a clear intent to manage volatility. That said, a structure concentrated in a single semiconductor sector could become a risk if sector rotation kicks in.

Outlook: The 5% Rate Era Brings Valuation Back

A notable indicator is that the U.S. 10-year Treasury yield has crossed 5%. High rates weigh on growth stock valuations, and bitcoin slipping below $80,000 along with a gradually rising volatility index suggest frayed market nerves. Oil prices are also swinging, with Brent crude plunging 4%. Still, the resilient New York market and a strong semiconductor index show that AI earnings momentum remains alive. The higher the rate burden, the more effective the approach of picking stocks undervalued relative to growth is likely to be. But now is the time to remember that where this portfolio's leverage and sector concentration intersect, drawdowns larger than expected can occur.

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