Intel Stock Soars, Outperforming Bitcoin and Wall Street in Israeli Investments

An investment of 100,000 shekels made one year ago in Intel stock has yielded the highest returns, growing to approximately 427,000 shekels, a 327.5% increase in dollar terms. Even after accounting for the dollar's weakening against the shekel, the investment is worth around 386,000 shekels. This remarkable performance is attributed to the surging demand for chips and memory, coupled with significant investments in artificial intelligence infrastructure.

The second-best performing asset was the South Korean Seoul Composite Index (KOSPI), which saw a 113% rise in its local currency, translating to a 119.5% gain for an Israeli investor holding an exchange-traded fund tracking the index, turning 100,000 shekels into about 213,000 shekels. This sector also benefited from the demand for semiconductors.

In contrast, traditional banking stocks lagged. While the Israeli insurance sector index rose 69.8%, making 100,000 shekels worth 170,000 shekels, a major bank like Bank Leumi only offered a 31.7% return, resulting in 132,000 shekels. Teva Pharmaceutical Industries also performed well, with a 70% gain.

Israeli stock market indices outperformed their US counterparts. The Tel Aviv 35 index grew 36.4%, while the S&P 500 rose 18.1% and the Nasdaq 100 increased 24.2% in dollar terms. However, the depreciation of the dollar against the shekel significantly reduced the returns for Israeli investors in US markets, with the S&P 500 yielding only about 107,000 shekels and the Nasdaq around 112,000 shekels from the initial 100,000 shekel investment.

Notable losses were seen in the defense industry, with Eretz Industries stock plummeting 44.2%, reducing the investment to 56,000 shekels. Bitcoin also experienced a significant downturn, falling 29.2% in dollar terms and 36.1% in shekels, leaving investors with approximately 64,000 shekels. Holding US dollars as cash resulted in a loss, with the 100,000 shekels converting to only 90,000 shekels. A simple shekel deposit account yielded a modest 4% return, amounting to 104,000 shekels, outperforming only cash dollars, Bitcoin, and Eretz Industries.