Palo Alto Networks Leads Tel Aviv Stock Exchange by Market Cap, Tower Semiconductor Tops Returns
Translated & summarized from Ice by baba
Palo Alto Networks leads the Tel Aviv 35 index by market capitalization with approximately 934.5 billion shekels as of October 16, 2026, significantly outpacing second-ranked Teva. Despite its high valuation, its index weight is limited. The banking sector is well-represented, but Tower Semiconductor has shown the highest stock returns since the start of 2026, with a 74.4% increase.
The story in 6 lines · by baba
- Palo Alto Networks leads the Tel Aviv 35 index with a market cap of 934.5 billion shekels as of October 16, 2026.
- Palo Alto Networks' market cap is 6.2 times larger than Teva's, which is second with 150.7 billion shekels.
- Four major banks, Leumi, Hapoalim, Mizrahi Tefahot, and Discount, are among the top ten companies.
- Elbit Systems ranks fourth with a market cap of 107.1 billion shekels, ahead of Bank Hapoalim.
- Tower Semiconductor leads stock returns with a 74.4% increase since the start of 2026.
- The four largest banks showed more moderate stock gains between 6% and 9.9% in the same period.
Palo Alto Networks, the cybersecurity firm founded and led by Nir Tsuk, stands at the forefront of the Tel Aviv 35 index's largest companies by market capitalization, boasting a value of approximately 934.5 billion shekels as of October 16, 2026. This valuation is 6.2 times greater than that of Teva Pharmaceutical Industries, which ranks second with about 150.7 billion shekels. Notably, Palo Alto Networks' market cap alone surpasses the combined value of the other nine companies in the top ten, which totals 730 billion shekels. Despite its leading market cap, Palo Alto Networks holds only a 1.39% weight in the Tel Aviv 35 index, significantly less than Teva's 9.64%, as index weights are determined by public holdings and not solely market cap.
The banking sector shows a strong presence among the top companies, with four banks in the top ten: Leumi (third, 108.7 billion shekels), Hapoalim (fifth, 99.8 billion shekels), Mizrahi Tefahot (seventh, 60.6 billion shekels), and Discount (tenth, 42.1 billion shekels). Together, these four banks represent a market value of approximately 311 billion shekels. The financial sector's influence is further bolstered by The Phoenix, ranking ninth with a 44.8 billion shekel valuation. Elbit Systems, a defense company, is fourth with a market cap of 107.1 billion shekels, outranking Bank Hapoalim and highlighting the significant weight of the defense industry on the stock exchange, even amidst sector declines.
Examining stock performance from the beginning of 2026 reveals a different picture. Tower Semiconductor, sixth in market cap, leads the top ten in returns with a 74.4% increase year-to-date. The Phoenix follows with a 39.8% rise, and Teva and Elbit Systems saw gains of 27.1% and 25.9%, respectively. In contrast, the four major banks in the top ten experienced more modest gains: Hapoalim rose 9.9%, Leumi 9.7%, Mizrahi Tefahot 8.9%, and Discount 6%. This indicates that while banks maintain a substantial market value, they are not leading in stock performance for the year.
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