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Nasdaq (NDAQ) to Benefit From Secular and Cyclical Tailwinds

Nasdaq Incorporated (NASDAQ:NDAQ) is one of the 12 oversold financial stocks to invest in according to hedge funds.

On January 30, Michael Cyprys from Morgan Stanley maintained his Overweight rating on Nasdaq Incorporated (NASDAQ:NDAQ). The analyst also raised his target price on the stock from $113 to $116, implying 46% upside.

Photo by Pascal Bernardon on Unsplash

Cyprys appreciates secular tailwinds for Nasdaq Incorporated (NASDAQ:NDAQ), which are likely to persist. For 2026-27, he expects cyclical catalysts to kick in as well, which will drive revenue acceleration across the Solutions segment.

On January 30, William Katz from TD Cowen maintained a Hold rating on Nasdaq Incorporated (NASDAQ:NDAQ). The analyst increased his price target on the stock from $104 to $105, leading to a revised upside potential of more than 32%.

Katz’s rating is based on TD Cowen’s adjustments following the recent earnings announcements, with investor focus now shifting to the upcoming investor day on February 25.

Nasdaq Incorporated (NASDAQ:NDAQ) is a technology company that was established as the world’s first electronic stock market in 1971. It serves capital markets and other industries through its Capital Access Platforms, Financial Technology, and Market Services segments. It offers real-time market data, indices, investor relations & governance solutions, sustainability products, workflow solutions, and more.

While we acknowledge the risk and potential of NDAQ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NDAQ and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 15 Most Promising Mid-Cap Healthcare Stocks Under $50 and 11 Most Promising Small-Cap Industrial Stocks Under $50.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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