The stock of British chipmaker Arm Holdings (ARM) is being added to the Nasdaq 100 index, replacing satellite radio provider Sirius XM (SIRI).
The change will occur before the start of trading on June 24 and is part of a quarterly rebalancing, said Nasdaq in a news release.
Arm Holdings currently has a market capitalization of $165 billion U.S. In comparison, Sirius XM’s market cap stands at $9.75 billion U.S.
The Nasdaq 100 is rebalanced quarterly and factors in market capitalization and stock performance when adding and removing securities.
Sirius XM’s stock is down 54% so far in 2024 and trading at $2.54 U.S. per share, making it a penny stock.
The stock of Arm Holdings has risen 130% on the year and is trading at $158.05 U.S. per share.
Sirius XM’s stock has been the worst performer this year in the Nasdaq 100, which is an index comprised of the 100 largest non-financial companies listed on the broader Nasdaq Composite stock exchange.
Arm Holdings is expected to benefit from inclusion in the Nasdaq 100 as mutual funds and exchange-traded funds (ETFs) that track the index will now buy its shares.
The Nasdaq 100 currently has a market value of $22 trillion U.S.
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