AI Value Investing Portfolio Holds +30% Return in Investment Report Despite Market Plunge

Amid Diverging US-Korea Markets, 'AI Value Investing Portfolio' Maintains +30%

As the KOSPI closed down 3.59% at 5,648.79 on the 3rd, the 'AI Value Investing Portfolio' defended a +30.08% return with total assets of $13,007. US markets supported tech stocks with the Nasdaq up over 1%, while clear risk-off sentiment was detected in Asian markets and currency rates. In particular, the won-dollar exchange rate surged to 1,344 won, heightening concerns over foreign capital outflows, but the Philadelphia Semiconductor Index's 3.47% surge confirms that AI infrastructure investment demand—the core pillar of this portfolio—remains robust.

$1,500 Wiped Out in a Week… Returns Still Solid

Portfolio assets peaked at $15,111 on the 29th of last month before slipping to $13,007 on the 3rd—a decline of roughly $2,000 in a single week. Nevertheless, the +30% return relative to the initial capital of $10,000 remains an impressive performance compared to the broader market. Given the portfolio's heavy concentration in semiconductors and AI growth stocks, high volatility is a cost to be accepted, and the recent pullback can be interpreted as a correction centered on leveraged products and excessively overvalued names.

A Valuation-Based Diagnosis of Holdings

Stock	Shares	Purchase Price	Current Price	PER
Broadcom	5.67 shares	$326.03	$322.23	41.2
Amazon	1.95 shares	$208.39	$245.63	19.9
Intel	2.80 shares	$104.56	$59.97	-
Meta	0.55 shares	$653.56	$606.73	20.7
SOXL	13.92 shares	$71.22	$68.17	-
TQQQ	1.13 shares	$76.34	$59.46	-
NVIDIA	24.00 shares	$184.21	$202.06	25.5
Micron	1.30 shares	$930.96	$833.59	11.2
AMD	6.47 shares	$198.62	$466.84	119.1
TSM	0.44 shares	$431.81	$398.63	25.8

The portfolio's largest holding, NVIDIA, trades at a price-to-earnings ratio of about 25 with a PEG of just 0.25 when adjusted for its growth rate, suggesting the stock remains undervalued relative to its growth. Micron sits at the most attractive point relative to its growth pace, with a P/E of 11 and a PEG of 0.16. Its EPS of $74, driven by a surge in HBM demand, underpins the memory supercycle thesis. AMD, by contrast, presents a dual narrative: its P/E above 119 looks expensive on the surface, but with a PEG around 0.5, any shortfall in future earnings growth against expectations could intensify correction pressure. Intel, still posting losses, warrants caution in trading.

Recent Trade Review: Profit-Taking and Rotation Into Undervalued Names

Date	Type	Stock	Shares	Price
2026-10-30	Buy	TSM	0.44 shares	$431.81
2026-10-30	Sell	AMD	0.34 shares	$566.42
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

Trading over the past month has followed a clear set of principles. The 185% gain in AMD was progressively realized to reduce single-stock concentration risk, while Micron and TSM were bought in tranches on the dip, reallocating capital to undervalued segments within the sector. The partial sale of NVIDIA was likewise a defensive move—trimming an overweight position while preserving the core stake. Scaling back the leveraged ETFs SOXL and TQQQ is viewed as a strategic choice to secure cash during a period of extreme volatility.

Outlook: Interest Rates and Currency in Focus

The US 10-year Treasury yield's climb to 4.96% is weighing on growth stock valuations, and the surge in the won-dollar rate could continue to constrain liquidity in Asian markets. That said, the VIX settling in the 20s and the semiconductor index closing strong suggest the risk appetite has not fully reversed. Holding core names with confirmed valuation headroom and adhering to a staged buying discipline through volatile periods will be key to defending returns going forward.

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