How Nasdaq's (NDAQ) AI Surveillance Upgrade Is Shaping Its Technology-Driven Compliance Story

• In October 2025, Nasdaq, Inc. announced enhancements to its market surveillance platform, embedding advanced AI capabilities across all stages of market abuse investigations and achieving a significant improvement in identifying complex manipulation schemes such as pump-and-dump activities.
• This upgrade marked a meaningful advance in the fight against financial crime, with the AI pilot outperforming traditional methods by identifying a much higher proportion of abusive trading patterns in historical data sets used by global financial institutions and regulators.
• We will explore how Nasdaq's expansion of AI-driven surveillance tools could shape its broader investment outlook, particularly in technology-driven compliance solutions.

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Nasdaq Investment Narrative Recap

To be a Nasdaq, Inc. shareholder, one needs to believe in the company’s ability to lead global market infrastructure and compliance innovation, and that new AI surveillance advances will reinforce Nasdaq’s technology-driven edge. The October 2025 AI enhancement may improve near-term competitive positioning for compliance solutions, but does not materially affect the immediate risk of delayed client decisions in large Financial Technology deals, potentially impacting revenue growth in upcoming quarters.

A related announcement, the September 2025 launch of Nasdaq Calypso as a managed service with AWS, shows ongoing efforts to modernize and streamline capital markets infrastructure for clients. Although this expands the technology platform and could support client retention and acquisition, the short term remains sensitive to spending cycles and customer deal timelines across Nasdaq’s divisions.

However, investors should be alert to the possibility that, despite fintech progress, long sales cycles for major deals could...

Read the full narrative on Nasdaq (it's free!)

Nasdaq's narrative projects $6.1 billion revenue and $2.0 billion earnings by 2028. This requires a 9.2% yearly revenue decline and a $0.5 billion earnings increase from $1.5 billion today.

Uncover how Nasdaq's forecasts yield a $101.67 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Eight fair value estimates from the Simply Wall St Community span a wide range, from US$37.13 to US$256.45 per share. While opinions diverge, recent AI surveillance upgrades reflect a catalyst for technology adoption that could influence Nasdaq’s performance outlook, explore these alternative perspectives to form your own view.

Explore 8 other fair value estimates on Nasdaq - why the stock might be worth less than half the current price!

Build Your Own Nasdaq Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Nasdaq research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Nasdaq research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Nasdaq's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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