October 31 Investment Report: AI Value Investing Portfolio +51.1%

[Daily Market Insight] Staying Calm Amid a Korean Market Meltdown: How the AI Value Investing Portfolio Weathered Turbulent Times

As the Korean stock market wobbled on the morning of the 30th with the KOSPI plunging more than 3%, the AI Value Investing Portfolio maintained an impressive cumulative return of 51.11%. Even amid the so-called 'Black Thursday' atmosphere, with the KOSPI collapsing to the 5,730 level and the KOSDAQ falling nearly 4%, the portfolio's defense of its $15,111 in total assets offers a textbook example of value investing enduring a volatile market.

A Performance Trajectory: Assets Grew 9% in a Single Week

The asset trajectory shows a clear upward path for this portfolio. Starting from $13,853 on the 23rd, it moved to $13,918 on the 26th, reached $14,318 on the 27th–28th, and hit $15,111 on the 29th—roughly 9% asset growth in just three days. Even as U.S. markets stirred unease, with the Nasdaq down 1.38% and Nasdaq 100 futures plummeting 2.42%, gains in semiconductor-centered holdings drove the asset growth. While the volatility index (VIX) has surged more than 7% to 18.42, the 10-year U.S. Treasury yield falling back below the 5% mark is a factor lending warmth to risk assets.

Holdings Diagnosis: A Dual Structure of Undervalued Cornerstones and Leverage

Stock	Shares	Purchase Price	Current Price	PER
NVIDIA	24.0	$184.21	$215.38	27.2
Micron	1.3	$930.96	$983.23	13.2
AMD	6.8	$198.62	$578.44	147.6
Broadcom	5.7	$326.03	$351.81	44.9
SOXL	13.9	$71.22	$107.35	-
TQQQ	1.1	$76.34	$72.36	-
Intel	2.8	$104.56	$95.53	-
Meta	0.5	$653.56	$612.49	20.9
Amazon	1.9	$208.39	$254.60	20.5

The portfolio's twin pillars are NVIDIA and Micron. NVIDIA's PEG ratio—a measure of price relative to growth—stands at just 0.27, suggesting its valuation burden remains modest despite rapid growth. Micron, with a PER of 13.2x and a PEG of 0.16, is seen as a case where earnings surging on explosive HBM demand have far outpaced its stock price. AMD, by contrast, trades at a PER above 147x, but on a PEG basis it is not overvalued relative to growth, and it has already delivered returns of nearly 2x. Intel is still posting losses, making the pace of its recovery the key variable. Leveraged products such as SOXL and TQQQ, with their accepted 3x volatility, served as catalysts amplifying gains in the rally.

Recent Trades Revisited: Cold-Headed Rebalancing on Concentration Warnings

Date	Type	Stock	Shares	Price
2026-10-23	Buy	Micron	0.5	$856.49
2026-10-23	Sell	NVIDIA	1.3	$212.21
2026-10-23	Sell	AMD	0.4	$507.93
2026-10-16	Buy	Micron	0.3	$931.24
2026-10-16	Sell	NVIDIA	1.3	$217.23
2026-10-09	Buy	Micron	0.1	$1035.84
2026-10-09	Sell	SOXL	0.7	$142.52
2026-10-09	Sell	TQQQ	0.1	$80.23
2026-09-18	Buy	Micron	0.2	$977.50
2026-09-18	Sell	SOXL	0.8	$114.82

The past month's trading can be summed up as 'position management and intra-sector rotation.' As NVIDIA's weighting exceeded 38% and single-stock concentration risk grew, the portfolio trimmed the position in three rounds since mid-September, redirecting the proceeds into Micron, which offered comparatively greater value relative to growth, via staggered purchases. Notably, buying continued even as Micron's stock pulled back from $1,035 to $856, underpinned by conviction in the extremely low growth-adjusted valuation flagged earlier. AMD delivered a 155% realized gain to secure cash while the core stake was retained—disciplined trading that avoided being swayed by emotion during the sharp selloff.

Market Outlook: Hope Offered by Falling Rates, a Shadow Cast by Oil

The day's indicators show optimism and caution coexisting. The 10-year U.S. Treasury yield dipping below 5% is positive for high-valuation growth stocks, but WTI crude surging more than 2% to $104 per barrel is stoking concerns of renewed inflation. Brent's slight decline offers some comfort, yet rising energy costs cannot be ruled out as a squeeze on corporate margins. The Korean spot won-dollar rate settling back to 1,334 is a plus for exporters. Given the plunge in Nasdaq 100 futures, short-term volatility is likely to persist, but a strategy like this one—built on a growth-adjusted undervalued foundation—has ample room to turn a correction phase into a buying opportunity. The key is maintaining balance in position sizes and discipline, just as it has been.

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