No matter how much the market jumps up and down, the best course of action is to continue to focus on the best stocks in the hottest markets.

And since Israel has been one of the hottest areas for us in recent weeks, today I’m highlighting another Israeli technology stock to add to your portfolio.

Let’s get to the details.

You may not have heard of Israel’s Mellanox Technologies  (NASDAQ:MLNX) but big-name companies like Intel (NASDAQ:INTC) and Oracle (NASDAQ:ORCL) depend on MLNX products. And the stock has been on fire lately thanks to strong sales in high-performance computing, enterprise data centers, cloud computing, financial services, Internet and Web 2.0.

The company has lately been receiving a strong boost from Oracle’s upbeat earnings call remarks about its Engineered Systems business, which grew 139% year-on-year. Oracle took a 10.2% stake in Mellanox in 2010, and Mellanox’s InfiniBand adapters are used in the former’s Exadata and Exalogic systems.

In addition, Mellanox is benefiting from stronger-than-estimated demand for Intel’s just-released server Romley CPUs that are expected to boost demand for Mellanox’s products. The new Romley chips were built with cloud computing and scalable server infrastructure in mind, and are expected to give a boost to data center IT spending.

In the first quarter, Mellanox’s sales rose 61% to $88.7 million, and its earnings rose 113% to 51 cents per share. The analyst community was expecting sales of $81.6 million and earnings of 34 cents per share, so the company posted an 8.7% sales surprise and a 50% earnings surprise.

But the best news was that the company issued second-quarter sales guidance of $125 million to $130 million—well above analysts’ consensus forecast of $83.4 million. Shares surged as a result, and two research firms covering the company upgraded the respective recommendations from “Hold” and “Neutral” to both “Buy” recommendations.

Today’s pullback in the stock is a great place to initiate a position, and MLNX is now a good near-term buy.