The Nasdaq-100 index is undergoing a significant reshuffle effective June 22, dropping Cognizant Technology Solutions after more than 20 years and adding several AI-focused and semiconductor-related companies. This marks a clear realignment of the index with emerging technology trends and investor interest.
- Cognizant leaves Nasdaq-100 after 20+ years
- Index adds AI and semiconductor firms
- Reshuffle reflects evolving tech market trends
What happened
On June 22, the Nasdaq-100 will remove Cognizant Technology Solutions from its roster for the first time in over two decades as part of its quarterly rebalance. Along with Cognizant, Charter Communications, Insmed, Verisk Analytics, and Zscaler will also be dropped. They are being replaced by new entrants including Astera Labs, CoreWeave, Nebius Group, Rocket Lab, and Teradyne. These changes are part of Nasdaq’s ongoing effort to maintain the index’s representation of the largest and most relevant non-financial companies listed on the Nasdaq exchange.
The adjustments reflect recent shifts in market dynamics where firms involved in artificial intelligence, semiconductor manufacturing, and AI infrastructure are gaining traction. Earlier this year, Nasdaq introduced revised rules to accelerate inclusion of large, newly listed companies through a “fast entry” mechanism, which may contribute to more rapid changes in the index composition going forward. The Nasdaq-100 underpins more than 200 investment products with assets exceeding $800 billion worldwide.
Why it matters
Cognizant’s removal signals a notable pivot away from traditional IT and software service providers towards companies that are seen as central to the AI and chip manufacturing boom. Cognizant’s share price decline of nearly 38% over the past six months highlights a period of underperformance relative to sectors driving current investor demand. This index update mirrors broader investor appetite shifting towards next-generation technologies and companies enabling AI infrastructure.
For investors, these changes may impact portfolio compositions as funds tracking the Nasdaq-100 adjust holdings accordingly. Companies like Astera Labs and CoreWeave, which specialize in technologies underpinning AI and semiconductor markets, stand to benefit from increased visibility and capital inflows following index inclusion. This rebalancing thus offers a window into emerging market leadership and technological priorities within the tech sector.
What to watch next
Market participants should monitor how the newly added companies perform in the weeks following their inclusion in the Nasdaq-100, especially given the increased investor focus on AI and semiconductors. The effect of Nasdaq’s “fast entry” rule, implemented in May 2026, may accelerate the pace of changes in future rebalances as other high-growth firms meet eligibility for swift inclusion.
Additionally, Cognizant’s stock performance and strategic direction will be closely watched to see if it can regain market momentum despite being removed from a major index. Broader sector trends around AI adoption, chip demand, and software services evolution will also influence how the Nasdaq-100 composition evolves next.