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. 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 Korean won terms. For Israeli investors who purchased an exchange-traded fund tracking the index in Tel Aviv, the return was 119.5%, turning 100,000 shekels into about 213,000 shekels. This sector also benefited from the demand for chips and memory.

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

Tel Aviv's main stock index, the TA-35, increased by 36.4%, turning 100,000 shekels into 136,000. This outperformed both the S&P 500, which rose 18.1% in dollar terms, and the Nasdaq 100, up 24.2%. The weakening dollar significantly impacted returns for Israeli investors, reducing the S&P 500's shekel return to approximately 107,000 shekels and the Nasdaq's to about 112,000 shekels. Even Nvidia's dollar return of 32.2% translated to only 119,000 shekels for Israeli investors.

Significant losses were seen in other investments. Eirit Industries, a defense stock, plummeted 44.2%, reducing 100,000 shekels to 56,000. Bitcoin experienced a 29.2% drop in dollar terms, translating to a 36.1% loss in shekels, leaving investors with around 64,000 shekels. Holding US dollars as cash resulted in a loss, with 100,000 shekels converting to only 90,000 shekels. A simple shekel deposit yielded a modest 4% return, amounting to 104,000 shekels, which was still better than holding dollars or Bitcoin, but less than any of the stock market investments analyzed.