Ahead of the market opening: The stocks that Nvidia boosted and what to expect today?

The trading day opened after the answer to the week's big question was received: Nvidia's strong reports ignited a rally in the chip sector, globally and in Tel Aviv. Now, the focus shifts to the interest rate arena.

The reaction to Nvidia's strong report did not take long to arrive, and this time — unlike the historical pattern where the stock tended to fall after good reports — Nvidia itself jumped 8% on Wall Street. The report, which beat expectations on every line and raised guidance, calmed the main fear: that the company would not be able to maintain its dizzying growth rate. The signal was clear — demand for AI continues to expand, and this ignited the entire sector.

In Tel Aviv, the impact was felt immediately. The TA-35 climbed 1.2% and the technology index 2.2%, in a direct continuation of the momentum in chip and software stocks in New York. Palo Alto jumped 10.6% (supported by strong reports also from CrowdStrike in the cyber field), Tower rose 5.4%, Nova 3.8% and Camtek 3.4%. Dual-listed stocks, which had suffered difficult weeks, finally received a tailwind.

Beyond the chips, the day was positive and broad. The TA-125 rose 1.3% and construction jumped 3.3%. The notable story: Delek Automotive jumped about 18–19% after controlling shareholder Gil Agmon purchased shares of the company — a move the market interprets as a strong expression of confidence by someone who knows the business from the inside. On the other hand, against the backdrop of the reports, Shufersal fell 7.3% and Ackerstein 7.5%.

Nvidia's report lifted the entire technology trade. The Nasdaq rose 1.5%, the S&P 500 0.7% and the Dow 0.2%. Besides Nvidia, Salesforce also jumped 22% (its best day since 2020) and Okta jumped 28%, thanks to their own strong reports.

An interesting angle: according to Melius Research, Nvidia's report is also positive for electricity producers. Nvidia CEO Jensen Huang emphasized that today "land with electricity" has become the main limitation of AI — not just the chips, but the availability of energy, land, and infrastructure, which take years to build.

This is a boost for the entire energy sector that feeds data centers — a topic also relevant to local stocks like Azrieli and Mega Or (data centers) and energy companies.

The opening today is expected to remain positive thanks to the momentum from Nvidia, but two factors may moderate it: possible profit-taking after a sharp rally, and the anticipation of Powell's speech later today at the Jackson Hole conference, which could move markets in any direction.

For the Israeli saver, this week was a reminder of how much the local market is intertwined with global AI trade. A report from one company in California boosted Tower, Nova, and Camtek in Tel Aviv, and affected everyone who holds exposure to indices through their pension. Nvidia provided the optimistic scenario, but as we have seen throughout the season, a sharp rally can be replaced by a quick correction.