Market Overview - The Tel Aviv Stock Exchange remained flat, with the Tel Aviv 35 Index reaching a new record of 4,009.36 points, up by 0.09% [1] - The Tel Aviv 125 Index decreased by 0.06% to 4,026.22 points, while the BlueTech Global Index increased by 0.27% to 725.83 points [1] - The All Bond corporate bond index rose by 0.10% to 423.01 points, with total turnover of NIS 3.70 billion in equities and NIS 6.43 billion in bonds [1] Currency Exchange Rates - The shekel-dollar exchange rate was set at NIS 3.104/$, reflecting a decrease of 1.052% from Monday [2] - The shekel-euro exchange rate was set at NIS 3.697/€, down by 0.559% [2] Top Performers - Next Vision (TASE: NXSN) led the market with a rise of 5.1%, achieving the highest trading turnover on the Tel Aviv 35 index [3] - Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) increased by 1.43%, and Nova Ltd. (Nasdaq: NVMI; TASE: NVMI) rose by 2.32% [3] - Bank Hapoalim (TASE: POLI) and Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) saw increases of 0.44% and 0.46%, respectively [3] Underperformers - Menora Mivtachim Holdings (TASE: MMHD) experienced the largest decline on the Tel Aviv 35 index, falling by 3.26% [4] - Clal Insurance Enterprise Holdings (TASE: CLIS) decreased by 2.16%, while Nice (Nasdaq: NICE; TASE: NICE) fell by 2.40% [4] - Bank Leumi (TASE: LUMI) saw a decline of 0.53%, and Energean plc (LSE: ENOG; TASE: ENOG) fell by 3.68% outside of the Tel Aviv 35 index [4]

Core Viewpoint - The semiconductor equipment sector is experiencing significant growth, driven by increased demand for chips, particularly due to advancements in artificial intelligence (AI) [1][2][3]. Group 1: Stock Performance - The S&P 500 has only risen by 1% since the start of 2026, while Lam Research, Applied Materials, and KLA have outperformed with increases of 27.6%, 25.8%, and 24.6% respectively [1]. - Israeli companies Nova Ltd. and Camtek have seen stock increases of 38% and 34% respectively during the same period, with Nova achieving a market cap of $13.7 billion and Camtek at $6.6 billion [2]. Group 2: Market Demand and Investment - The demand for semiconductor equipment is rising due to the accelerated development of AI, leading to increased investments in wafer fabrication equipment (WFE), which is expected to reach $160 billion this year, up from a previous forecast of $135 billion [4]. - There is a significant demand for memory chips, advanced packages, and processors to support data centers, alongside a shortage of production capacity, prompting increased investment budgets [5]. Group 3: Future Outlook - Analysts from Cantor predict that the AI infrastructure investment cycle is just beginning and will accelerate between 2026 and 2028, positively impacting major companies like KLA, Lam Research, and ASML [6]. - Cantor expects these companies to report improved orders and a positive outlook for 2026, supported by a strong AI computing cycle [6]. Group 4: Recommendations and Price Targets - Cantor maintains a balanced risk/reward ratio for Nova ahead of upcoming reports, recommending it for long-term investment, while suggesting a neutral stance on Camtek due to uncertainties regarding order timing [9]. - Bank of America has raised price targets for Nova to $450 and for Camtek to $160, indicating confidence in their future performance [9].

Core Viewpoint - Nova (NVMI) is a leading provider of metrology solutions for semiconductor manufacturing, currently valued at $13.6 billion [1] Group 1: Stock Performance - NVMI has experienced a significant stock price increase of 28.83% since the Trend Seeker issued a "Buy" signal on January 2 [2] - The stock reached an all-time high of $475.00 on January 22 [4] - Over the past year, NVMI shares have risen nearly 78% [6] - The stock gained 34% in the last month, with a recent trading price of $449.50 [7] Group 2: Technical Indicators - NVMI has a Weighted Alpha of +111.14, indicating strong performance [7] - The Relative Strength Index (RSI) is at 73.67, suggesting the stock is in a strong momentum phase [7] - There is a technical support level around $454.21 [7] Group 3: Financial Projections - Revenue is projected to increase by 30.69% this year and by an additional 11.86% next year [7] - Earnings are estimated to grow by 29.86% this year and by 12.11% next year [8] - NVMI maintains a 100% "Buy" opinion from Barchart, reflecting strong analyst confidence [6][7] Group 4: Valuation Metrics - The company has a trailing price-earnings ratio of 58.91x, which some analysts view as a high valuation [6] - NVMI's market capitalization stands at $13.61 billion [7]

Group 1: Company Overview - Nova Ltd. is a leading provider of metrology equipment and software essential for semiconductor manufacturing, with a market cap of approximately $9.1 billion [2] - The company's share was trading at $403.62 as of January 12th, with trailing and forward P/E ratios of 52.42 and 41.15 respectively [1][2] Group 2: Financial Performance - In 2024, Nova achieved a revenue growth of 29% to $672 million, driven by strong demand across various industry segments [3] - The company reported a gross margin of 57.5%, an operating margin of 25.1%, and a net income margin of 27.3%, indicating strong profitability [4] - Free cash flow grew by 105% year-over-year to $210 million, showcasing effective cash generation [4] - Nova has a return on equity of 19.8% and a return on assets of 13.2%, reflecting effective capital utilization [4] Group 3: Market Position and Opportunities - The ongoing continuation of Moore's Law, advanced packaging technologies, and rising demand in AI, ML, IoT, and automotive semiconductors are expanding Nova's addressable market [3] - Growing global investment in fabrication facilities amid supply chain diversification creates new opportunities for equipment suppliers like Nova [3] - Nova's technology leadership and innovation-driven model position it well within the semiconductor ecosystem, making it a high-quality compounder poised for future growth [5] Group 4: Competitive Landscape - While cyclical industry trends and competitive pressures exist, Nova's strategic positioning and technology leadership provide a competitive edge [5] - The company is not among the 30 most popular stocks among hedge funds, with 22 hedge fund portfolios holding NVMI at the end of the second quarter, down from 25 in the previous quarter [7]

The Tel Aviv Stock Exchange fell today. The Tel Aviv 35 Index fell 0.40% to 3,830.54 points, the Tel Aviv 125 Index fell 0.39% to 3,878.85 points; and the BlueTech Global Index fell 0.23% to 678.11 points. The All Bond corporate bond index fell 0.08% to 424.13 points. Turnover totalled NIS 4.93 billion in equities and NIS 4.62 billion in bonds. On the foreign exchange market, the representative shekel-dollar rate was set 0.031% lower from Tuesday, at NIS 3.174/$, and the representative shekel-euro rate wa ...

Group 1 - Allegro MicroSystems, Inc. (ALGM) shares increased by 10.8% to close at $31.53, driven by higher trading volume compared to typical sessions, despite a 1% loss over the past four weeks [1] - The growth in automotive and data center revenues is attributed to advancements in AI-led server architectures and e-mobility solutions [1] - The company is expected to report quarterly earnings of $0.14 per share, reflecting a year-over-year increase of 100%, with revenues projected at $224.41 million, up 26.2% from the previous year [2] Group 2 - The consensus EPS estimate for Allegro MicroSystems has remained unchanged over the last 30 days, indicating that stock price movements may not continue without trends in earnings estimate revisions [3] - Allegro MicroSystems holds a Zacks Rank of 3 (Hold) within the Zacks Electronics - Semiconductors industry [4] - Another company in the same industry, Nova Ltd. (NVMI), closed 2.2% higher at $391.31, with a 15% return over the past month [4]

Market Performance - The Tel Aviv Stock Exchange experienced a rise, with the Tel Aviv 35 Index increasing by 1.16% to 3,738.33 points, marking a new record [1] - The Tel Aviv 125 Index rose by 1.64% to 3,794.16 points, and the BlueTech Global Index increased by 2.30% to 658.99 points [1] - The All Bond corporate bond index rose by 0.54% to 423.54 points, with total turnover reaching NIS 5.91 billion in equities and NIS 6.84 billion in bonds [1] Currency Exchange Rates - The shekel-dollar rate was set 0.723% lower at NIS 3.203/$, while the shekel-euro rate decreased by 1.153% to NIS 3.688/€ [2] Sector Performance - Construction stocks saw significant gains following the Bank of Israel's interest rate cut, with YH Dimri Construction and Development rising by 11.9%, the largest increase on the market [3] - Shapir Engineering and Industry rose by 9.62%, while Elbit Systems Ltd. increased by 5.27% after securing a $150 million contract in Europe [3] - Chip companies Camtek and Nova Ltd. rose by 11.61% and 11.72% respectively [3] Banking Sector - The banking sector faced declines after the unexpected interest rate cut by the Bank of Israel, with Bank Leumi falling by 2.20% and Bank Hapoalim decreasing by 2.35% [4] - Navitas Petroleum experienced the largest drop on the Tel Aviv 35 Index, falling by 4.88%, while Next Vision and Teva Pharmaceutical Industries Ltd. fell by 2.65% and 2.82% respectively [4]

Core Insights - Wasatch Global Investors reported a decline of -3.17% for its fund-Investor Class in Q3 2025, contrasting with a 12.19% gain for the Russell 2000 Growth Index, despite a strong rally in US small-cap equities supported by the Fed's interest rate cut [1] Company Performance - Nova Ltd. (NASDAQ:NVMI) achieved a one-month return of 10.13% and a remarkable 65.87% increase in share value over the past 52 weeks, closing at $315.84 per share with a market capitalization of $9.365 billion on December 12, 2025 [2] - Nova Ltd. reported record total revenues of $224.6 million in Q3 2025, reflecting a strong year-over-year growth of 25% [4] Investment Perspective - The investment strategy for Nova Ltd. is not based on thematic views but rather on its strong track record of earnings growth and the anticipated high demand for its products as semiconductor manufacturing becomes more complex [3] - Although Nova Ltd. is recognized for its potential, some analysts suggest that certain AI stocks may offer greater upside potential with less downside risk [4]

Market Performance - The Tel Aviv Stock Exchange saw a rise today, with the Tel Aviv 35 Index increasing by 0.38% to a record 3,447.17 points and the Tel Aviv 125 Index rising by 0.41% to 3,505.73 points [1] - The All Bond corporate bond index rose by 0.04% to 419.53 points, while the BlueTech Global Index fell by 0.92% to 597.63 points [1] - Total turnover in equities reached NIS 1.42 billion and NIS 2.40 billion in bonds [1] Currency Exchange Rates - The shekel-dollar rate was set 0.81% higher at NIS 3.235/$, and the shekel-euro rate was set 0.926% higher at NIS 3.761/€ [2] Notable Stock Movements - Nice (Nasdaq: NICE; TASE:NICE) experienced the largest increase on the Tel Aviv 35 Index, rising by 5.61% [2] - Other notable gainers included Navitas Petroleum LP (TASE: NVPT) with a rise of 5.04% and Clal Insurance Enterprise Holdings (TASE: CLIS) increasing by 3.31% [2] - Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) rose by 0.50% [2] Banking Sector Performance - Bank Hapoalim (TASE: POLI) led the market with a rise of 1.59% and the highest trading turnover [3] - Other banks also saw gains, with Bank Leumi (TASE: LUMI) rising by 1.27%, Mizrahi Tefahot Bank increasing by 1.55%, and Israel Discount Bank (TASE: DSCT) rising by 2.19% [3] Declining Stocks - Camtek (Nasdaq: CAMT; TASE: CAMT) had the largest decline on the Tel Aviv 35 Index, falling by 4.73% [3] - Other notable decliners included Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) down by 4.08%, Nova Ltd. (Nasdaq: NVMI; TASE: NVMI) down by 3.89%, and Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) down by 2.47% [3]

Core Insights - U.S. stocks experienced a rally in Q3, supported by the Federal Reserve's interest rate cut and steady economic data, with the Russell Midcap® Growth Index increasing by 2.78% [3][17] - The Wasatch U.S. Select Fund underperformed, declining by -1.93%, primarily due to concentrated holdings in stocks that faced slower revenue growth [3][4][17] Fund Performance Analysis - The Fund's performance was negatively impacted by a few concentrated stock holdings that reported slower revenue growth, leading to significant declines in their stock prices [4][6] - The investment strategy focuses on high-quality, long-duration growth companies, which faced headwinds as low-quality stocks gained favor in the market [7] Key Detractors - BellRing Brands, Inc. (BRBR) was the largest detractor, with concerns over competition in the protein shake category; however, the long-term outlook remains positive due to category growth potential [8] - Shift4 Payments, Inc. (FOUR) faced stock price declines despite solid organic revenue growth, attributed to macroeconomic concerns and investor sentiment following its acquisition of Global Blue [9] - Inspire Medical Systems, Inc. (INSP) was sold during the quarter after management downgraded guidance due to delays in product rollout, raising execution concerns [10] Top Contributors - Medpace Holdings, Inc. (MEDP) was the top contributor, with strong revenue and earnings growth, raising full-year guidance despite a slowdown in biotech funding [11] - Fabrinet (FN) benefited from strong product adoption, particularly in data centers linked to AI, although the investment is not solely based on AI themes [12] - Nova Ltd. (NVMI) also contributed positively, with a strong track record in semiconductor manufacturing, benefiting from increasing complexity in the industry [13] Future Outlook - The Fund remains committed to its investment philosophy, focusing on high-quality growth companies despite recent underperformance [14] - The fundamentals of the companies within the Fund are encouraging, with strong earnings growth expected to drive return potential over a three- to five-year horizon [15]