The Nasdaq-100 Index has announced significant changes ahead of its annual reconstitution, adding six new companies and removing an equal number, effective December 22, 2023. This update reflects shifts in market dynamics and highlights the ongoing evolution of the technology sector.
Changes to the Index
The six companies joining the Nasdaq-100 are: Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), Ferrovial SE (NASDAQ:FER), Insmed Inc. (NASDAQ:INSM), Monolithic Power Systems, Inc. (NASDAQ:MPWR), Seagate Technology Holdings plc (NASDAQ:STX), and Western Digital Corp. (NASDAQ:WDC). In contrast, the six firms being removed from the index include: Biogen Inc. (NASDAQ:BIIB), CDW Corporation (NASDAQ:CDW), GlobalFoundries Inc. (NASDAQ:GFS), Lululemon Athletica Inc. (NASDAQ:LULU), ON Semiconductor Corporation (NASDAQ:ON), and The Trade Desk, Inc. (NASDAQ:TTD).
The inclusion of Seagate and Western Digital comes amid a significant surge in demand for their data storage products, largely driven by advancements in artificial intelligence. Year-to-date, Seagate’s stock has seen an impressive rise of 232.96%, while Western Digital’s stock has climbed 277.04%, according to data from Benzinga Pro.
Alnylam Pharmaceuticals also reported strong third-quarter earnings, posting an adjusted profit of $2.90 per share, a substantial recovery from a loss of $0.50 per share the previous year. The company experienced a remarkable 149% increase in quarterly sales, reaching $1.25 billion, significantly surpassing analysts’ expectations of $977.79 million. Year-to-date, Alnylam’s stock has risen 70.17%.
Impact on Exiting Companies
Notably, Walmart (NYSE:WMT) failed to qualify for the Nasdaq-100 after switching its listing to Nasdaq after the deadline for inclusion. Meanwhile, Lululemon has seen a decline in its stock value, dropping 44.95% year-to-date. Despite posting strong earnings and raising its full-year forecast, the company reported a 2% dip in North American sales, although international revenue surged by 33% with comparable sales rising 18%.
The Nasdaq-100 index changes come shortly after the S&P 500’s quarterly rebalancing, which will also see shifts in its composition. Notably, Carvana (NYSE:CVNA) is set to join the S&P 500, alongside CRH Plc (NYSE:CRH) and Comfort Systems USA (NYSE:FIX). Conversely, LKQ Corp (NASDAQ:LKQ), Solstice Advanced Materials (NASDAQ:SOLS), and Mohawk Industries (NYSE:MHK) will be removed.
These adjustments in major stock indices reflect not only current market trends but also future expectations, impacting investors and companies alike.
