Cognizant Technology Solutions will be removed from the Nasdaq-100 index on June 22 after over two decades. The reshuffle includes AI-focused firms Astera Labs and CoreWeave, reflecting a market shift towards AI and semiconductor companies.
The Nasdaq-100 reshuffle highlights the significant market rotation towards AI and semiconductor companies, impacting the composition of a key benchmark index and reflecting changing investor preferences.
Cognizant Technology Solutions is set to be removed from the Nasdaq-100 index on June 22, concluding its more than two-decade presence in the benchmark. This change is part of Nasdaq's quarterly rebalancing, which will also see Charter Communications, Insmed, Verisk Analytics, and Zscaler removed.
The index will welcome new constituents including AI-focused companies Astera Labs and CoreWeave, alongside Nebius Group, Rocket Lab, and Teradyne. These additions signify a notable market shift, with investor interest increasingly directed towards artificial intelligence and semiconductor-linked firms, often at the expense of traditional IT and software services companies.
The Nasdaq-100, which tracks 100 of the largest non-financial companies on the Nasdaq exchange, is a widely followed benchmark with over $800 billion in assets under management globally. The latest adjustments underscore the growing prominence of AI and chipmaking companies in the market.
Cognizant's stock has seen a substantial decline, falling nearly 38% in the past six months and erasing billions in market value. The company's shares closed at $52.17 on June 12. Nasdaq also announced updated index rules, including a 'fast entry' mechanism effective May 2026, which could impact future index compositions.
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