Nasdaq (NDAQ) announced that Super Micro Computer, Inc. (SMCI) will replace Walgreens Boots Alliance, Inc. (WBA) before market open on July 22, joining the Nasdaq-100 Index (NDX) and the Nasdaq Composite Index (NDXE).

Over the past year, Walgreens' stock price has declined by over 60%, leading to its removal from the Nasdaq-100 Ex-Tech Sector Index (NDXX) and the Nasdaq-100 ESG Index (NDXESG). Persistent declines were largely attributed to weak consumer spending and inflationary pressures.

Despite financial restructuring and cash flow challenges, Walgreens' healthcare segment demonstrated strong performance, driving a 2.6% sales growth. However, the company has twice revised down its earnings per share (EPS) guidance, anticipating reduced revenue for Q4 of fiscal year 2024.

In contrast, Super Micro's stock has surged over 200% in the past year, fueled by demand in AI and other advanced technologies. It is expected to be included in additional indices such as the Nasdaq-100 Technology Index (NDXT). Super Micro benefits from increased demand for innovative products and data centers, promising strong future growth prospects.

Super Micro's inclusion reflects market emphasis on technology and innovation, while Walgreens faces challenges and structural adjustments. This change will impact investor focus and strategies concerning Nasdaq-100 index components.