Investment Report: AI Portfolio Defends 64.31% Return Amid Sharp Selloff

Korean Market Tumbles, U.S. Market Holds the Line… A Critical Moment for Leveraged Semiconductor Plays

Seoul's stock market was rocked by an unusual morning selloff on the 12th. The KOSPI plunged 3.65% to around the 6380 level, while the KOSDAQ tumbled 4.83%. In contrast, the U.S. market had closed on a flat note the previous day, with the Dow up 0.83% and the Nasdaq up 0.64%. Even amid this turmoil, the AI Value Investing Portfolio is holding onto a 64.31% return on its initial capital. Over the past five days, assets have been somewhat pressured, retreating from a peak of $17,315 to $16,431, but this is judged to be a temporary correction driven by heightened volatility from leveraged products.

Semiconductors Remain the Engine of Returns

The portfolio's strength comes from its semiconductor and AI lineup centered on the U.S. market. Micron is holding steady at $1,035 against a purchase price of $997, and as the company's earnings surge on the memory supercycle sweeping the industry, its price-to-earnings ratio has fallen to 13.9x. With a PEG ratio—a measure of valuation relative to growth—of just 0.16, it remains attractive. Nvidia, too, with a PEG of 0.29, is not overly expensive relative to its growth pace. Microchip Technology, on the other hand, has delivered more than 3x returns on the purchase price, but with a price-to-earnings ratio reaching 158x, concerns over its high valuation coexist. Triple-leveraged products like SOXL and TQQQ were the main culprits behind the recent decline in asset value during this correction, but they will also recover quickly when the rebound comes.

Stock	Quantity	Purchase Price	Current Price	PER
Broadcom	5.67 shares	$326.03	$360.14	46.0
Microchip Technology	7.17 shares	$198.62	$620.68	158.3
Amazon	1.95 shares	$208.39	$254.06	20.4
Intel	2.80 shares	$104.56	$107.08	-
Meta	0.55 shares	$653.56	$720.89	27.2
Nvidia	26.59 shares	$184.21	$230.48	29.1
SOXL	13.92 shares	$71.22	$142.52	32.2
TQQQ	1.13 shares	$76.34	$80.23	32.6
Micron	0.52 shares	$997.21	$1035.84	13.9

Profit-Taking Crosses Paths with Buying on Undervaluation

Recent trading activity shows a consistent direction. Since September, the portfolio has partially sold SOXL in several installments to unwind the overheated volatility of triple leverage, redirecting those funds into undervalued individual stocks such as Micron. Notably, the additional purchase of Micron on October 9—even as the semiconductor index was plunging—was a contrarian buy rooted in conviction about HBM4 price increases and the durability of the memory cycle. The partial sale of TQQQ the same day reads as defensive positioning against a short-term Nasdaq correction. The assessment is that a structural rebalancing is underway: reducing leverage and shifting assets into fundamentally undervalued stocks.

Date	Type	Stock	Quantity	Price
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
2026-08-28	Sell	SOXL	0.81 shares	$123.05
2026-08-21	Buy	Nvidia	0.84 shares	$216.85
2026-08-21	Sell	Meta	0.10 shares	$545.83

The Challenges Posed by Exchange Rates and Oil Prices

One point worth watching is the won-dollar exchange rate. The won weakened 10.55 won to the 1,332 range, paradoxically coexisting with the Korean market's plunge—a result seen as flight-to-safety sentiment offsetting concerns about foreign capital outflows. With the U.S. 10-year Treasury yield marching higher at 5.24%, valuation pressure on growth stocks remains. That said, the VIX at 15.48 indicates we are not yet in panic territory, and the previous day's gains in the U.S. market weaken the case for a downturn. Rising oil prices (WTI at $92.75), which stoke inflation expectations, are a risk factor. Ultimately, whether this Korean market selloff proves to be a passing episode or a spillover from U.S. rate burdens will determine the direction ahead. The consensus is that this strategy—which has trimmed leverage and refined its assets around undervalued quality stocks—has reached the moment when its defensive repositioning can shine.

※ This report is an analysis of the simulated trading record of the AI Value Investing Portfolio and does not constitute investment advice. Actual investing should be carried out at your own judgment and responsibility.