Nasdaq-100 Reshuffle: 5 AI & Space Stocks Added, 5 Removed

Before US stock markets opened on Monday, 22 June 2026, the Nasdaq-100 index went through a reconstitution that caught the attention of investors around the world. Five new companies were added to the index, while five others were removed. What makes this reshuffle special: nearly every stock that came in belongs to the AI infrastructure and space technology theme, while those removed are "old economy" names whose growth has been slowing.

For Malaysian investors who buy US stocks through a CDS account or a global platform, this change is more than just foreign news. It gives a clear picture of where institutional capital is flowing, and why certain stock prices can move sharply simply because a name is added to or dropped from an index. This article explains the full list confirmed from Nasdaq's official announcement, why it matters, brief profiles of the companies coming in, and the lessons we can draw as investors.

Quick Summary: Who Is In, Who Is Out

According to Nasdaq's official announcement dated 12 June 2026, here are the changes that took effect before the market opened on 22 June 2026:

5 stocks ADDED to the Nasdaq-100:

• Astera Labs, Inc. (ALAB) - connectivity solutions for AI data centres
• CoreWeave, Inc. (CRWV) - specialised cloud provider for AI training
• Nebius Group N.V. (NBIS) - AI cloud platform spun out of Yandex
• Rocket Lab Corporation (RKLB) - rocket launch and space systems company
• Teradyne, Inc. (TER) - semiconductor test and robotics automation

5 stocks REMOVED from the Nasdaq-100:

• Charter Communications, Inc. (CHTR) - telecommunications and cable company
• Cognizant Technology Solutions Corporation (CTSH) - IT services
• Insmed Incorporated (INSM) - biotechnology company
• Verisk Analytics, Inc. (VRSK) - insurance data analytics
• Zscaler, Inc. (ZS) - cloud-based cybersecurity

This list has been confirmed across several independent, reputable sources including Nasdaq's official press release via GlobeNewswire.

What Is a Nasdaq-100 Reconstitution?

The Nasdaq-100 is an index that tracks the 100 largest non-financial companies listed on the Nasdaq exchange. It is dominated by tech giants such as Nvidia, Microsoft, Apple, Amazon and Alphabet. When we say "index", you might picture a number rising and falling on a screen. But behind that number is an actual list of companies that make it up, and that list does not stay fixed forever.

Each quarter and annually, Nasdaq reviews the composition of the index. Companies that are no longer large enough or no longer meet the criteria are removed and replaced with more eligible ones. This process is called a reconstitution or rebalance. The concept is the same as what happens on Bursa Malaysia, where the FBM KLCI index also reviews its components every six months. If you want to understand the mechanics of a local index review, we have written about how to trade stocks that enter and exit the FBM KLCI index.

What makes the June 2026 reshuffle more significant is that it is the first quarterly review under the new Nasdaq-100 methodology that took effect on 1 May 2026. We will discuss this new methodology in more detail below.

Why This Reshuffle Matters for Stock Prices

This is the part many new investors miss. When a stock is added to the Nasdaq-100, there is a wave of "forced buying" that happens automatically. The reason is simple: index funds and ETFs that track the Nasdaq-100 must hold stocks in the same proportions as the index.

The most famous ETF tracking this index is Invesco QQQ, with assets under management reaching hundreds of billions of dollars (around US$480 billion). QQQ is a passive fund, meaning it simply mirrors the index. When Astera Labs joins the index, QQQ's managers and dozens of other funds are FORCED to buy Astera Labs shares to match their portfolios to the index, regardless of whether they like the stock. Conversely, a removed stock such as Charter Communications gets sold automatically.

This is why share prices can move sharply in the days before the effective date. Short-term traders often try to predict which stocks will be added and buy early, before the wave of institutional buying arrives. But remember, this spike does not necessarily last. For example, Rocket Lab shares reportedly fell after the inclusion news, a reminder that "buy the rumour, sell the news" often plays out in situations like this.

The Big Theme: AI Infrastructure and Space Technology

If you look at the five stocks added, a clear pattern emerges. Four of the five companies are closely tied to the artificial intelligence (AI) infrastructure theme, while one represents the fast-growing space and defence sector. This is not a coincidence. It reflects where global institutional money is flowing in 2026.

On the other hand, the removed stocks mostly come from slower-growth sectors - cable telecommunications, traditional IT services, and data analytics. The market's message is fairly clear: the world's most influential technology index is "refreshing" itself to reflect the AI economy.

Brief Profiles of the 5 Stocks Added

1. Astera Labs (ALAB) - This company builds chips and high-speed connectivity solutions that allow thousands of processors in AI data centres to "talk" to each other without bottlenecks. Think of it as the high-speed plumbing for AI data centres. Astera reportedly has billions of dollars in order backlog from major cloud companies.

2. CoreWeave (CRWV) - A specialised cloud infrastructure provider built for large-scale AI training and high-performance computing. CoreWeave's growth is anchored by an infrastructure agreement worth around US$21 billion with Meta Platforms running through 2032, making it one of the most closely watched AI cloud players.

3. Nebius Group (NBIS) - An AI-focused cloud platform spun out of the Russian tech company Yandex. Nebius now operates as an international entity and is regarded as one of the newer challengers in the European AI infrastructure market.

4. Rocket Lab (RKLB) - A space company originally famous for its Electron rocket, but most of its revenue now comes from building satellites, components and space systems. According to its financial reports, first-quarter 2026 revenue reached US$200 million with a record backlog of US$2.2 billion. Rocket Lab is developing the medium-class Neutron rocket for satellite constellation launches.

5. Teradyne (TER) - A semiconductor test and robotics automation company. Roughly 70% of Teradyne's revenue is tied to AI-related demand, making it another "indirect play" on the AI boom - a company that sells equipment to those building AI chips.

Why Were These 5 Stocks Removed?

Removal from an index usually happens when a company's market capitalisation declines relative to others, to the point where it no longer ranks among Nasdaq's 100 largest companies. It does not necessarily mean the company is "bad" - it simply means other companies are growing faster and taking their place.

Charter Communications (cable/telecom), Cognizant (IT services), Verisk (insurance analytics), and Zscaler (cybersecurity) are all still operating solidly. Their growth momentum and market valuations just are not as strong as the AI-theme stocks replacing them. Insmed, meanwhile, is a biotechnology company whose share price is subject to higher volatility. This situation echoes what happened in Malaysia when MSCI removed six stocks from its Malaysia index in May 2026 - exiting an index can trigger heavy institutional selling.

The New Nasdaq-100 Methodology and SpaceX's "Fast Entry"

The June 2026 reshuffle is the first application of the new Nasdaq-100 methodology that took effect on 1 May 2026, following a public consultation with market participants. Some key changes:

• Rank-based quarterly reviews - there are now checkpoints in March, June and September (in addition to the full annual review in December). This allows the index to more frequently remove constituents that no longer meet ranking thresholds and add new companies that are more representative of the market.
• A more comprehensive measure of company size - the index now considers both listed and unlisted shares when determining eligibility, to reflect a company's full economic size (especially for multi-class share structures).
• A "Fast Entry" pathway - for very large new listings (ranking within the top 40 of existing constituents), a company can be evaluated as early as its seventh trading day and added quickly.

This Fast Entry rule has drawn attention because it paves the way for SpaceX to join the Nasdaq-100 after its listing. According to estimates cited from Goldman Sachs analysis, SpaceX's inclusion could trigger mechanical buying of tens of billions of dollars from funds tracking the index. This shows just how powerful a single index decision can be on capital flows.

Lessons for Malaysian Investors

Although this is US market news, there are several important lessons for Malaysian investors who buy foreign stocks:

First, don't chase index spikes blindly. Share prices often surge BEFORE the inclusion date due to speculation, then can fall after the news is confirmed. Buying at the peak of euphoria is a real risk. Understanding the basics before investing in American stocks will help you avoid emotional decisions.

Second, an index reflects a theme, not a guarantee. Inclusion in the Nasdaq-100 confirms a company's size, but does not guarantee future profits. Many AI-theme stocks in 2026 trade at high valuations, which means market expectations are already very high. Any disappointment can cause a sharp correction.

Third, understand what you own. If you invest through an ETF such as QQQ, you now automatically own a little Astera Labs, CoreWeave and Rocket Lab - whether you realise it or not. Knowing the index's contents helps you understand your portfolio's real risk exposure. For beginners, we recommend reading the difference between Dow Jones, S&P 500 and Nasdaq first.

Fourth, opportunity exists in both directions. Some long-term investors view stocks REMOVED from an index as buying opportunities at lower prices, because forced institutional selling often pushes prices below fair value temporarily.

Frequently Asked Questions (FAQ)

When did the June 2026 Nasdaq-100 reshuffle take effect?
The changes took effect before the market opened on Monday, 22 June 2026.

How often is the Nasdaq-100 index reviewed?
Under the new methodology (effective 1 May 2026), there are rank-based quarterly reviews in March, June and September, in addition to the full annual reconstitution in December.

Which stocks were added to the Nasdaq-100 in June 2026?
Astera Labs (ALAB), CoreWeave (CRWV), Nebius Group (NBIS), Rocket Lab (RKLB) and Teradyne (TER).

Which stocks were removed?
Charter Communications (CHTR), Cognizant (CTSH), Insmed (INSM), Verisk Analytics (VRSK) and Zscaler (ZS).

Why do stock prices move when a company joins an index?
Index funds and ETFs such as QQQ must hold stocks according to the index composition. When a stock is added, these funds are forced to buy automatically, creating additional demand. When removed, it gets sold.

Will SpaceX join the Nasdaq-100?
The new "Fast Entry" rule opens a pathway for large listings such as SpaceX to be added quickly after listing, although the exact date depends on eligibility criteria being met.

Can Malaysian investors buy these stocks?
Yes. Through a CDS account that allows foreign stock trading, or a global broker platform, Malaysian investors can buy US stocks such as ALAB, CRWV and RKLB directly, or gain exposure through the QQQ ETF.

Does index inclusion guarantee the stock will rise?
No. Inclusion confirms a company's size but is not a performance guarantee. In fact, some stocks fall after inclusion news is confirmed due to the "buy the rumour, sell the news" phenomenon.

Conclusion

The June 2026 Nasdaq-100 reshuffle is not just a swap of names on a list. It is a clear signal that the AI infrastructure and space technology themes are now large enough to replace old-economy companies in the world's most influential technology index. For Malaysian investors, it is a reminder that understanding index structure and institutional capital flows is just as important as picking individual stocks.

If you are interested in starting to invest in US stocks as discussed in this article, the first step is having the right account.

You can open a CDS account that lets you invest not only on Bursa Malaysia, but also in foreign stocks such as the US and Hong Kong markets from a single account.

For beginners, first grab our free Stock Market Basics Ebook to understand the fundamentals before investing with real money.

Further Reading

• Before Investing in American Stocks: 7 Things Malaysian Investors Must Know
• What Is the Difference Between Dow Jones, S&P 500 and Nasdaq?
• FBM KLCI Review: How to Trade Stocks Entering/Exiting the Index
• MSCI Removes 6 Stocks from Malaysia Index: RM2 Billion Wiped Out
• 7 Reasons to Invest in US (Foreign) Stocks