The Nasdaq 100 could imminently include SpaceX, but first it's getting a shakeup that will usher in another space-technology company and four flashy AI plays.
Index provider Nasdaq Global Indexes said late Thursday that Rocket Lab as well as connectivity chip maker Astera Labs, cloud-computing companies CoreWeave and Nebius, and chip-equipment maker Teradyne will join the Nasdaq 100 before the open on June 22.
SpaceX's stock is set to begin trading on the Nasdaq on Friday. The company priced its massive initial public offering on Thursday, raising $75 billion. It is set to become the largest IPO in history, easily eclipsing energy company Saudi Aramco's $29.4 billion listing in 2019.
Nasdaq in late March paved the way for fast-tracking SpaceX into the Nasdaq 100, its premier index. Companies usually have to wait months, but new rules make it so SpaceX will be eligible to join in as little as 15 trading days from the time of the listing.
A similar move was seen as possible for the S&P 500 index, but last week S&P Dow Jones Indices foiled such expectations, saying it had decided against policy changes that would have allowed SpaceX and other megacap tech companies to be included in the benchmark index earlier than what's customary and with lenience around the typical financial requirements.
The Nasdaq 100 and the S&P 500 are coveted indexes for companies, as they expose shares to a broad range of investors, including passive funds as well as actively managed funds that may have limitations on where they can invest. Nasdaq says that more than 200 investment products with a combined $800 billion-plus in assets track the Nasdaq 100.
Thursday's move was part of Nasdaq's quarterly rebalance. To make room for the five new companies, Charter Communications $(CHTR)$, Cognizant Technology Solutions $(CTSH)$, Insmed (INSM), Verisk Analytics (VRSK) and Zscaler (ZS) are getting the boot from the Nasdaq 100.
The index is made up of the largest 100 non-financial companies listed on the Nasdaq.