Summary:
Palantir, MicroStrategy, and Axon Enterprise to join the Nasdaq 100 Index on Dec. 23.
Nasdaq 100 has reached a historic 20,000 level for the first time.
Palantir's stock surges due to growing AI demand.
MicroStrategy benefits from rising bitcoin prices.
Super Micro Computer faces challenges leading to its removal from the index.
Key Companies Joining Nasdaq 100
Palantir (PLTR), MicroStrategy (MSTR), and Axon Enterprise (AXON) are set to join the Nasdaq 100 Index on Monday, Dec. 23. They will replace Super Micro Computer (SMCI), Moderna (MRNA), and Illumina (ILMN) as part of an annual reconstitution of the index.
Nasdaq 100 Milestone
This week has been significant for the Nasdaq 100, which recently topped the 20,000 level for the first time, driven by surging tech stocks following inflation data that reinforced expectations for a rate cut by the Federal Reserve.
Annual Reconstitution
The Nasdaq 100 includes the 100 largest non-financial sector companies within the Nasdaq Composite Index, and it is reconstituted annually in December, with quarterly rebalancing based on market capitalization.
Other Index Changes
Moreover, the Dow and S&P 500 have announced changes as well, with Apollo Global Management (APO) and Workday (WDAY) set to join the S&P 500, while Nvidia (NVDA) and Sherwin-Williams (SHW) have recently joined the Dow.
Palantir's Strong Year
Palantir’s stock has experienced a remarkable rise this year, largely due to increased demand for its AI offerings. Its recent move from the New York Stock Exchange to the Nasdaq has made it eligible for this prestigious index.
MicroStrategy and Bitcoin
Shares of MicroStrategy have surged alongside the price of bitcoin (BTCUSD), particularly in light of Donald Trump’s reelection, who aims to position the U.S. as the "crypto capital of the planet".
Super Micro Computer's Challenges
The removal of Super Micro Computer is due to its challenges, including a February deadline to file its delayed annual report or risk delisting. The company has faced volatility amid concerns of accounting manipulation and has seen its stock fluctuate significantly this year.
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