Nasdaq-100 drops Cognizant, adds AI-focused firms Astera, CoreWeave in quarterly reshuffle

The Nasdaq-100 quarterly rebalancing removes Cognizant Technology Solutions (CTSH) after 20+ years of index membership, signaling a structural shift in how market-cap-weighted tech indices allocate exposure. The removal reflects CTSH's prolonged underperformance over the past six months, indicating investor conviction that legacy IT services lacks momentum in the current cycle.

Concurrent additions of Astera Labs and CoreWeave underscore accelerating capital rotation toward AI infrastructure and semiconductor supply-chain beneficiaries. This dual movement—purging mature IT services while embracing pure-play AI hardware and compute platforms—reveals institutional preference for companies positioned to capture near-term AI capex cycles rather than traditional consulting models.

For CTSH holders, the removal may trigger passive index rebalancing outflows, though the company's fundamental business remains intact. For emerging AI-adjacent names, inclusion validates their market-cap growth trajectory and improves passive fund accessibility, potentially reducing volatility and lowering cost of capital.

Sector implication: Technology remains the dominant growth vector, but composition is rapidly shifting from software services to hardware infrastructure. The reshuffle reinforces a two-speed tech market where AI-native companies command premium valuations while diversified IT service providers face structural headwinds absent significant strategic repositioning.