The June 2026 Nasdaq-100 rebalance marks another milestone in the AI investment boom. Five companies—CoreWeave (NASDAQ:CRWV), Nebius (NASDAQ:NBIS), Astera Labs (NASDAQ:ALAB), Rocket Lab (NASDAQ:RKLB) and Teradyne (NASDAQ:TER)—will join the index on 22 June, replacing older technology names Charter Communications (NASDAQ:CHTR), Cognizant Technology (NASDAQ:CTSH), Insmed (NASDAQ:INSM), Verisk Analytics (NASDAQ:VRSK) and Zscaler (NASDAQ:ZS).
The new wave of AI names should generate additional buying from index funds tracking the Nasdaq-100 while increasing institutional ownership and liquidity.
Unlike the current AI giants, such as Nvidia (NASDAQ:NVDA) and Microsoft (NASDAQ:MSFT), these businesses represent different parts of the AI ecosystem—from cloud infrastructure and semiconductor connectivity to automated chip testing and even space infrastructure.
At a glance
| Company | AI Theme | Profitability | Growth | Valuation | Risk |
| CoreWeave | AI cloud computing | Not yet | ★★★★★ | Very expensive | Very High |
| Nebius | AI cloud & infrastructure | Not yet | ★★★★★ | Expensive | High |
| Astera Labs | AI networking chips | Moving towards sustained profits | ★★★★☆ | Premium | Medium-High |
| Teradyne | AI semiconductor testing | Highly profitable | ★★★☆☆ | Reasonable | Medium |
| Rocket Lab | Space infrastructure supporting AI | Limited profitability | ★★★★☆ | Very expensive | Very High |
Financial comparison
| Company | Approx. Market Cap | Revenue Growth | Gross Margin | Free Cash Flow | Balance Sheet |
| CoreWeave | ~$80bn+ | Extremely high | Strong | Negative | Heavy investment |
| Nebius | ~$45-50bn | Triple-digit | Improving | Negative | Cash-rich |
| Astera Labs | ~$60bn | Triple-digit | High | Improving | Strong |
| Teradyne | ~$35bn | Double-digit | High | Strongly positive | Excellent |
| Rocket Lab | ~$70bn | Strong | Moderate | Negative | Improving |
Figures rounded using latest available company filings and consensus estimates.
Valuation comparison
| Company | Forward Sales | Forward Earnings | PEG View | Overall Value |
| CoreWeave | Extremely high | N/A | N/A | Expensive |
| Nebius | Very high | N/A | N/A | Expensive |
| Astera Labs | High | ~100 | ~2.3 | Premium |
| Rocket Lab | Extremely high | N/A | N/A | Speculative |
| Teradyne | Moderate | ~50 | Attractive ~1.3 | Best value |
Company analysis
CoreWeave – The purest AI infrastructure play
CoreWeave has rapidly become one of the world’s largest providers of GPU cloud infrastructure.
Its customers include many of the largest AI developers requiring access to thousands of advanced GPUs rather than building their own data centres.
Positives
- Explosive revenue growth
- Massive AI infrastructure demand
- Long-term contracted backlog
- Strategic partnerships with leading AI developers
- Potential operating leverage as utilisation improves
Recent analyst commentary has become increasingly bullish after management disclosed substantially larger EBITDA and backlog figures than many investors had expected, with some analysts arguing the shares remain undervalued despite their rapid rise.
Risks
- Heavy debt
- Large capital expenditure requirements
- Highly dependent on Nvidia GPU supply
- Still not consistently generating free cash flow
- Premium valuation leaves little room for disappointment
Nebius – Europe’s hidden AI cloud champion
Nebius has quietly become one of the fastest-growing AI infrastructure companies outside the United States.
Following its restructuring, management has focused entirely on AI cloud computing and GPU infrastructure.
Positives
- One of the fastest revenue growth rates globally
- Large cash reserves
- Rapid customer acquisition
- Exposure to enterprise AI adoption
Risks
- Limited operating history as a standalone AI company
- Cash burn remains significant
- Shares already reflect enormous expectations
Several analysts remain positive on long-term AI demand but argue that much of the near-term upside has already been reflected in the share price.
Astera Labs – The semiconductor ‘picks and shovels’
Astera sells specialised connectivity chips allowing AI servers containing thousands of GPUs to communicate efficiently.
Rather than competing with Nvidia, Astera benefits from Nvidia’s growth.
Positives
- Every larger AI cluster requires faster connectivity
- High gross margins
- Asset-light business model
- Excellent long-term operating leverage
Risks
- Premium valuation
- Customer concentration
- Semiconductor spending remains cyclical
Many investors see Astera as one of the highest-quality AI infrastructure businesses because it generates attractive margins without needing to finance enormous data centres.
Teradyne – The profitable AI compounder
Teradyne is very different from the other names.
Rather than building AI hardware, it manufactures automated testing systems used by semiconductor manufacturers.
As AI chips become increasingly complex, testing becomes even more critical.
Positives
- Strong free cash flow
- Healthy dividend
- Excellent balance sheet
- Market leadership
- Lower valuation
Risks
- Semiconductor industry cycles
- Slower growth than AI infrastructure stocks
- Industrial automation recovery remains uneven
For investors seeking AI exposure without extreme valuation risk, Teradyne arguably offers the best balance between growth and quality.
Rocket Lab – AI’s space infrastructure opportunity
Rocket Lab is increasingly viewed as more than simply a launch company.
Its satellite manufacturing, space systems and future Neutron rocket could become critical infrastructure supporting communications, Earth observation and AI-enabled defence applications.
Positives
- Huge addressable market
- Strong launch record
- Growing defence business
- Multiple revenue streams
- Founder-led management
Risks
- Very high valuation
- Capital intensive
- Execution risk around Neutron
- Competition from SpaceX
Following its Nasdaq-100 inclusion, investors are increasingly comparing Rocket Lab’s valuation with SpaceX (NASDAQ:SPCX), raising questions over whether expectations have become too optimistic.
Analyst sentiment
| Company | Analyst view |
| CoreWeave | Very bullish long-term, valuation debated |
| Nebius | Positive but more cautious after strong rally |
| Astera Labs | Strong growth favourite |
| Teradyne | Viewed as quality semiconductor play |
| Rocket Lab | Long-term opportunity but valuation controversial |
Which investors should own each?
| Investor type | Best choice |
| Maximum growth | CoreWeave |
| Highest risk / highest reward | Nebius |
| Best long-term AI compounder | Astera Labs |
| Conservative growth | Teradyne |
| Space economy believers | Rocket Lab |
Investor verdict
The June 2026 Nasdaq-100 rebalance marks another milestone in the AI investment boom. For UK retail investors looking beyond today’s AI megacaps, these five stocks provide exposure to different layers of the AI value chain.
- Astera Labs stands out as the highest-quality long-term growth investment, combining structural AI demand with an asset-light, high-margin business.
- Teradyne offers the best balance of valuation, profitability and dependable cash generation, making it the most suitable choice for investors who want AI exposure without paying extreme multiples.
- CoreWeave could deliver the largest upside if AI infrastructure spending remains exceptionally strong, but it also carries the highest execution and financing risks.
- Nebius offers substantial potential as an emerging AI cloud provider, though its valuation already assumes sustained rapid expansion.
- Rocket Lab is the wildcard. If the space economy becomes an essential layer of AI infrastructure over the next decade, today’s valuation may eventually be justified—but it remains the most speculative investment of the group.
Best under-the-radar global AI stocks for the next 3 years
For a diversified AI portfolio, a blend of Astera Labs, Teradyne, and CoreWeave offers exposure across semiconductor infrastructure, testing equipment and AI cloud computing, balancing growth potential with varying levels of risk.
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