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Some of the biggest names in the tech sector may be facing significant changes in the near future. The Nasdaq 100, which is made up of 100 companies, is set to change its weighting. The changes will be made on Friday, 14 July 2023, with the new weighting set to take effect before markets open on Monday, 24 July.

The Nasdaq 100 is made up of stocks belonging to a group called the “Magnificent Seven,” which includes some of the biggest tech companies in the world, including Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT) and Nvidia (NASDAQ: NVDA). Together, these seven companies make up more than 50% of the weight in the Nasdaq.

Shares of Nvidia have not responded very positively to the news, and neither have many of its other leading tech stocks. Are they in for a rough ride? Let’s take a look at what the news could mean for Nvidia and other tech stocks.

What is NVDA Stock Doing Today?

Nvidia (NASDAQ: NVDA) is currently down by 1% in early trading today amid reports that the Nasdaq 100 is preparing for a readjustment.

After a volatile start to the day, NVDA stock is showing some signs of bouncing back.

Why Is NVDA Stock Rebounding?

It’s no secret that NVDA is one of the most powerful companies in the world, and it’s no surprise that it’s outperforming the rest of the market right now.

Why is NVDA doing so well?

We’ve seen NVDA outperform the rest of the AI and blockchain stocks, both of which are on the rise right now.

However, the impact on NVDA and other Nasdaq 100 stocks is yet to be determined. EFTs and mutual funds that track the index may be affected, but investors should not worry too much.

According to Investor’s Business Daily, the impacts may be limited. For example, the Nasdaq index’s big-cap component will change weightings, rather than being completely added or removed. Also, a lot of money tracks the broad index, so S&P500 component changes get much more attention.

In light of this, it is unlikely that the ‘Magnificent Seven’ will experience significant pain once the index is revised. NVDA and other tech names may experience some volatility later in the month as the market responds to the revision, but these big tech names have weathered similar storms in the past. This time should be no different.

At the time of publication, the author of this article did not hold (directly or indirectly) any position in the securities mentioned. The opinions expressed are those of the author and are subject to change. Please note that InvestorPlace.com’s Terms of Use and Disclosure apply to the content of this article.For the past three-plus years, Samuel O’Bourn has been writing about financial markets and economic policy. He focuses on EV stocks, green energy, and Non-Fungible Tokens (NFTs). Samuel loves helping others understand the ins and outs of economics. He’s one of the top 15% stock pickers on tipranks.