Super Micro Computer will replace Walgreens Boots Alliance in the Nasdaq 100 index before the start of trading on Monday, July 22.
Super Micro shares gained 4.8% in overnight trading.
The change, announced in a press release issued Friday evening, reflects the sharp decline in Walgreens' market value this year and the surge in Super Micro's stock price. The Nasdaq 100 is composed of 100 of the largest nonfinancial companies in the Nasdaq Composite. This change has been anticipated given the drop in Walgreens' stock price and the big gain in Super Micro's share price.
Companies need to maintain a weighting of at least 0.1% of the Nasdaq 100's market value, now over $20 trillion, to maintain membership in the index. Walgreens market value is around $10 billion, or about 0.05% of the index's value. Walgreens has the lowest market cap in the index.
Super Micro's stock has tripled this year and is valued at over $50 billion.
Before this change, Arm Holdings replaced Sirius XM Holdings in the Nasdaq 100 in June.
Some of the smallest current members of the Nasdaq 100, or NDX, now are Warner Bros. Discovery, Illumina, and MongoDB.
The largest exchange-traded fund tied to the Nasdaq 100 is the Invesco QQQ Trust.