Resilient Defense Amid the Semiconductor Shock: AI Value Investing Report Posts 47.89% Return

Markets Buckled Under the Semiconductor Shock — But This Portfolio Held On to +47.89%

On the first trading day of November 2026, global markets faced a sharp correction. The Philadelphia Semiconductor Index plunged 7.2% in a single day, exposing cracks in the AI-driven rally, while the Nasdaq fell 2.86% and the KOSPI tumbled 3.48%. Even amid this turmoil, the AI Value Investing Portfolio maintained a 47.89% return on initial capital, demonstrating its defensive strength during the downturn.

An Asset Curve That Held Firm Through the Correction

Over the past five days, the portfolio's assets grew from $13,918 to $14,789. Notably, they had surged to $15,111 on October 29 before shedding about $322 in the semiconductor-driven selloff. Still, given that the portfolio gained roughly $870 in the week leading up to the plunge, this dip can be interpreted as a natural pause within a profit-taking uptrend. Above all, defensive trading — realizing gains from AMD and Nvidia rallies on October 9, 16, and 23 — helped cushion the impact of this shock.

Holdings Check: The Defensive Power of Undervaluation

Stock	Quantity	Purchase Price	Current Price	P/E
Broadcom	5.67 shares	$326.03	$345.00	44.1
Amazon	1.95 shares	$208.39	$243.79	19.6
Intel	2.80 shares	$104.56	$92.07	-
Meta	0.55 shares	$653.56	$624.52	21.3
SOXL	13.92 shares	$71.22	$102.39	23.1
TQQQ	1.13 shares	$76.34	$69.26	28.1
Nvidia	24.00 shares	$184.21	$213.66	27.0
Micron	1.30 shares	$930.96	$934.27	12.6
AMD	6.47 shares	$198.62	$566.42	144.5
TSMC	0.44 shares	$431.81	$431.81	28.0

Semiconductors remain the backbone of the portfolio. Micron trades at a P/E of just 12.6x with a PEG of only 0.16, leaving a wide gap between its valuation and the earnings growth implied by strong HBM demand. Nvidia, too, looks relatively comfortable on valuation terms relative to growth, at a 27x P/E and a PEG of 0.26. AMD's P/E of 144.5x is admittedly demanding, but its PEG of 0.56 suggests a substantial portion of its future earnings recovery is already priced in. Intel, still posting negative EPS, is a slow turnaround play, but it retains option value amid the ongoing restructuring of the semiconductor supply chain.

Recent Trades Reviewed: The Rhythm of Staged Buying and Position Management

Date	Action	Stock	Quantity	Price
2026-10-30	Buy	TSMC	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	$1,035.84
2026-10-09	Sell	TQQQ	0.06 shares	$80.23
2026-10-09	Sell	SOXL	0.73 shares	$142.52

The key to recent trading has been 'reallocation within the same sector.' The portfolio steadily trimmed positions in AMD, which had surged 185%, and Nvidia, which had climbed more than 38%, easing overheating concerns, and redirected the proceeds into Micron and TSMC, both of which carry extremely low PEG ratios. Rather than betting on the market's direction, this approach narrows relative valuations within the same growth story — and combined with staged buying that lowers the average cost basis during dips, it can be seen as a play aimed at both defense and offense.

Outlook: In a Phase of Heightened Volatility, Patience Is the Answer

The VIX fear index spiked 12.9% in a single day to 19.4, while WTI crude rose to $104, adding stagflation fears to the mix. However, the slight dip in the 10-year Treasury yield to 4.93% and the fact that gold fell 3.3% — suggesting even safe-haven demand is restrained — indicate this correction is closer to a valuation reset than a liquidity crisis. For stocks deemed undervalued on a PEG basis, the semiconductor selloff may in fact serve as an opportunity for staged buying. That said, managing exposure to leveraged products SOXL and TQQQ will determine success for the time being.

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