Key facts
- The Nasdaq-100 index will undergo a quarterly reshuffle on June 22.
- Cognizant Technology Solutions will be removed from the Nasdaq-100 index.
- Cognizant has been part of the Nasdaq-100 for over two decades.
- Astera Labs will be added to the Nasdaq-100 index.
- CoreWeave will be added to the Nasdaq-100 index.
- The reshuffle reflects a market shift towards AI and semiconductor companies.
- Astera Labs' stock price rose significantly in May.
- Astera Labs' stock increase is attributed to its performance and innovative semiconductor solutions.
The Nasdaq-100 index is set to implement its quarterly rebalancing on June 22, a move that will see Cognizant Technology Solutions removed from the prestigious list after more than two decades of inclusion. The reshuffle signals a notable shift in market focus, with AI-focused companies Astera Labs and CoreWeave being added to the index. This adjustment underscores the growing dominance and investor interest in the AI and semiconductor sectors.
Astera Labs, one of the newly added companies, has recently demonstrated significant market strength. Its stock price experienced a substantial rise throughout the month of May. This upward trend is largely attributed to the company's robust performance and its development of innovative solutions within the competitive semiconductor industry. The inclusion of Astera Labs and CoreWeave highlights their perceived importance and growth potential in the current technology landscape.
The Nasdaq-100 index, which comprises the 100 largest non-financial companies listed on the Nasdaq Stock Market, undergoes regular reviews to ensure its composition accurately reflects market trends and the performance of leading companies. Cognizant's removal after a long tenure suggests a change in its relative market standing or growth trajectory compared to emerging AI and semiconductor players.