Cognizant to be removed from Nasdaq-100 index after 20 years

IT services firm Cognizant is set to be dropped from the prestigious Nasdaq-100 stock index after a two-decade run, impacting its profile in major tech corridors including Hebbal, Bengaluru. The removal highlights how the artificial intelligence boom is reshaping global tech stock rankings.

The exclusion of the IT services company from the index reflects its relative market capitalization rather than its recent operating performance. The decision comes even as Cognizant has demonstrated positive business momentum in its recent financial disclosures.

Specifically, Cognizant recently posted a strong first quarter and raised its full-year outlook. Despite these positive operating results, the company's market capitalization relative to other rising tech firms has led to its removal from the index.

The space made vacant by Cognizant's exit will be filled by a new crop of companies that are currently benefiting from the rapid expansion of the artificial intelligence boom. This transition ends Cognizant's historic 20-year presence on the prestigious Nasdaq-100 index, underscoring the dramatic market shifts driven by AI technology.