Nvidia Surpasses Expectations Again While Israeli Solar Stock Soars on UBS Upgrade
Global markets showed optimism following strong earnings reports that confirm the ongoing AI boom. Nvidia, the semiconductor giant, once again exceeded analyst forecasts with second-quarter revenue of $96.2 billion, more than double the previous year’s quarter, beating the expected $92.17 billion. Its adjusted gross margin remained high at 75%, and the company projected third-quarter revenue of $108 billion, surpassing the $104 billion consensus. Nvidia’s stock rose over 4% in after-hours trading despite an initial dip.
In Asia, markets were mixed after Nvidia’s report, with South Korea’s Kospi index surging 2.2% while Hong Kong’s Hang Seng and Japan’s Nikkei declined slightly. The Bank of Korea raised interest rates by 0.25% to 3%, the highest since January 2025, aiming to curb inflation which remains above the 2% target despite strong economic growth driven by chip exports.
Salesforce shares jumped 13% in after-hours trading after reporting better-than-expected second-quarter results, including $11.35 billion in revenue and strong AI product growth. The company announced a strategic partnership with Anthropic to integrate its Claude AI model into Salesforce’s platform. Salesforce raised its full-year revenue forecast to $46.1-$46.4 billion.
Israeli solar company SolarEdge saw a sharp stock increase after UBS upgraded its rating from neutral to buy and raised its price target by over 40%. SolarEdge’s shares had fallen 62% since June following disappointing guidance but have gained 186% from their 2024 low.
Oil prices continued to decline amid diplomatic talks in the Middle East that may reopen the Strait of Hormuz, easing supply disruptions. Brent crude futures fell 0.7% to $87.24 per barrel, marking a fourth consecutive day of losses.
In Tel Aviv, dual-listed stocks opened slightly higher, with chipmakers Tower and Nova gaining over 1%, while Ormat Technologies declined 2.8%. The Tel Aviv 90 index rose 1.1%, and the Tel Aviv 35 index edged up 0.1%. Meanwhile, Dick’s Sporting Goods shares plunged 31% after lowering its annual sales and profit forecast, though Goldman Sachs maintained a buy rating, citing strong market positioning despite near-term challenges.
