The term NASDAQ Computer Index refers to a stock market index consisting of software and hardware companies. The NASDAQ Computer Index is designed to represent the financial health of the overall computer industry.
Also known as the NASDAQ Computer Technology Index, the NASDAQ Computer Index consists of 27 companies believed to represent a cross-section of computer companies in the United States. This includes software, hardware, as well as the semiconductor industries. The index was first established by the National Association of Securities Dealers Automated Quotations System back in 1993.
The index is calculated using market capitalization, which means the movement of the common stocks of large cap companies have a greater impact on the movement of the index. The index trades under the stock ticker IXCO.