UBS Elevates Nasdaq, Inc. to a Buy: Potential for Double-Digit Gains as Market Structure and AI Converge

Nasdaq, Inc. (NDAQ)—the powerhouse behind one of the world’s largest stock exchanges and a leader in market technology—has just received a pivotal analyst upgrade. UBS, a globally recognized investment bank with deep expertise in financial services, has shifted its rating from Neutral to Buy, setting an ambitious new price target of $115. This adjustment signals a major shift in sentiment and highlights the growing investor interest in market infrastructure plays, especially as AI is increasingly integrated into financial systems.

UBS’s call is notable not only for its bullishness, but for the sheer scale of its implied upside: with NDAQ shares recently trading around $93.83, the new target suggests a potential return of over 22%. For investors seeking exposure to the digital backbone of global capital markets—and to the accelerating adoption of AI—this upgrade is a critical signal worth dissecting.

Key Takeaways

• Potential Upside: UBS’s $115 price target on Nasdaq, Inc. represents a potential upside of over 22% from current levels.

• Stock Performance: NDAQ has been on a strong run, recently touching a 52-week high of $95.49, with the current price consolidating near all-time highs.

• Earnings Momentum: The company’s latest Q2 report showed a 13% jump in revenue, beating both top- and bottom-line consensus estimates.

• AI and Tech Integration: Recent commentary from Nasdaq’s CEO highlights AI as a “real opportunity,” aligning with market trends and the stock’s upgrade.

• Short Interest Trends: Latest data shows a modest decline in short interest, potentially indicating growing market confidence.

• UBS’s Influence: As a top-tier global bank, UBS’s upgrade carries significant weight, especially given its deep sector expertise.

A Closer Look: Why Nasdaq, Inc. Stands at the Intersection of Market Innovation and Growth

Nasdaq, Inc.: The Engine Powering Global Markets

Nasdaq, Inc. is far more than just a stock exchange operator. Headquartered in New York, the company’s business model spans market services (trading, clearing, listing), information services (data, analytics), and technology solutions (including cloud-based trading and surveillance). Nasdaq’s technology powers not only its own exchanges but also provides mission-critical infrastructure to more than 130 other markets worldwide. Increasingly, its strategic focus is on leveraging AI and cloud computing to enhance transparency, security, and efficiency across global capital markets.

This places Nasdaq at the center of two powerful megatrends: the modernization of financial infrastructure and the rapid adoption of artificial intelligence in trading, compliance, and data services.

UBS Upgrade: Analyst Confidence, Rationale, and Influence

UBS’s decision to upgrade NDAQ from Neutral to Buy is a clear vote of confidence. UBS is one of the world’s largest and most respected financial institutions, with a renowned equity research division and a particular strength in financials and market infrastructure. Their analysts are known for rigorous, data-driven research and for influencing institutional flows. This upgrade therefore carries outsized significance—particularly as it comes amid record highs for the stock and robust earnings momentum.

UBS’s $115 price target represents a substantial premium to current levels, suggesting the firm sees both continued operational outperformance and secular tailwinds from AI adoption and global market expansion. The upgrade may also reflect a view that the market underappreciates the recurring revenue and scalability of Nasdaq’s technology-driven business lines.

"UBS’s global reach and sector expertise lend heavy credibility to the upgrade—especially as it closely tracks with Nasdaq’s recent earnings strength and strategic AI push." Deepstreet

Financial Performance: Earnings Beat and Revenue Growth

Nasdaq’s Q2 2025 report, released July 24, was a clear catalyst for renewed optimism:

The company’s 13% YoY revenue increase and EPS beat reinforce the strength of its increasingly diversified business model. Growth was driven by both the core market services segment and expanding technology/data revenues. Notably, recurring revenues now constitute a larger share of the business, providing insulation against cyclical volatility.

Stock Price Action: Momentum and Technicals

• One-Year Trend: NDAQ has climbed from a 52-week low of $64.34 to a recent high of $95.49, reflecting a broad rerating by investors.

• Current Price: $93.83 (as of latest session), consolidating near all-time highs.

• Technical Picture: The 20-day Exponential Moving Average (EMA) stands at $89.58, with the stock trading above both the EMA and Bollinger Band upper limit ($92.74)—a sign of strong momentum but also potential short-term overextension.

• RSI: At 60.4, momentum is robust but not yet in overheated territory.

Investor sentiment has been net-positive, with 148 "up" days versus 100 "down" over the past year—a sentiment ratio of nearly 60%. Average daily volume remains healthy at over 3 million shares, but recent days have seen a dip in volume, often a sign of consolidation before a potential breakout.

Recent News: Growth Catalysts and Strategic Positioning

Recent headlines provide crucial context for the upgrade:

• Earnings Momentum: "Nasdaq Q2 Revenue Jumps 13 Percent" (The Motley Fool) details the company’s strong revenue and earnings beat, affirming bullish analyst projections.

• AI Integration: "NASDAQ CEO reveals where AI is a 'real opportunity'" (Fox Business)—CEO Adena Friedman discusses Nasdaq’s AI initiatives, echoing sector-wide enthusiasm for data-driven innovation.

• Short Interest: "Nasdaq Announces Mid-Month Open Short Interest Positions..." (GlobeNewsWire) notes a modest decline in short interest, potentially signaling reduced bearishness or hedging as institutional sentiment turns more bullish.

Potential Upside: What UBS’s Price Target Implies

With NDAQ trading at $93.83 and the new UBS target at $115, the implied potential return exceeds 22%. This is a significant premium for a blue-chip market operator, especially given its growing recurring revenue streams and the secular tailwinds from AI and digitization.

For investors, the upgrade is a strong signal that even after a powerful run, Nasdaq’s story is far from over. The market appears to be rewarding the company’s strategic pivot toward technology and data—not just as an exchange, but as a platform powering the next generation of capital markets.

Risks and Considerations

No upgrade is without caveats. The stock’s strong run leaves it susceptible to short-term profit-taking, and technicals suggest it is close to overbought territory. Any disappointment in future earnings, or a broader tech selloff, could reignite volatility. Still, the fundamental story—recurring revenues, high operating leverage, and AI-driven growth—remains intact.

The Bottom Line: A Strategic Upgrade for a Market Infrastructure Leader

UBS’s upgrade of Nasdaq, Inc. to Buy is a powerful endorsement of both the company’s recent execution and its long-term growth strategy. For investors seeking exposure to the digital transformation of financial markets, the firm’s $115 target highlights material upside—even after a year of strong gains. With AI and technology integration accelerating, Nasdaq is positioned not just as a market operator, but as a systemically important tech company at the very heart of global finance.