Intercontinental Exchange (ICE) is expanding its derivatives line up with planned cash-settled futures tied to GPU compute via NATIVX’s COIL Index, as well as new contracts referencing central bank decisions and US natural gas storage data.

The recent futures announcements come after a tougher run for Intercontinental Exchange’s stock, with the share price down 17.68% over the past 90 days and the 1-year total shareholder return falling 24.11%. This is despite a positive 3-year total shareholder return of 19.52% and 5-year total shareholder return of 22.30%.

If these new GPU compute and macro futures have caught your attention, it could be worth widening your search to other companies tied to AI infrastructure and demand through the 52 AI infrastructure stocks

Bulls see Intercontinental Exchange’s new GPU and macro futures as a catalyst after the recent share price slide, while bears point to a richer earnings multiple and mixed valuation signals. Which case do the numbers lean toward next?

Most Popular Narrative: 30% Undervalued

Compared to Intercontinental Exchange's last close at $135.26, the most followed narrative pegs fair value at $193.13, using an 8.35% discount rate to map future cash generation back to today.

The continued expansion and integration of ICE's global electronic trading platforms across asset classes, including record energy, interest rate, and equity contract volumes, suggests ongoing benefits from digitization and greater market electronification, which are likely to drive sustained double-digit growth in transaction revenues and operating leverage.

Want to see what justifies that higher fair value for Intercontinental Exchange? The narrative leans heavily on steady revenue gains, firm margins and a richer future earnings multiple. Curious how those pieces fit together into one cohesive pricing story?

Result: Fair Value of $193.13 (UNDERVALUED)

However, for Intercontinental Exchange, heavier competition from alternative trading venues and higher technology spending could pressure margins and challenge the current undervaluation story.

Next Steps

With mixed sentiment around Intercontinental Exchange’s valuation and growth story, it can be helpful to act promptly and evaluate both sides for yourself using the 5 key rewards and 1 important warning sign.

Looking for more investment ideas beyond Intercontinental Exchange?

If you are serious about building a stronger portfolio, do not stop at Intercontinental Exchange. Use the Simply Wall St Screener to quickly surface focused stock ideas that match your goals.

• Target potential mispricings by scanning companies that appear to trade below their assessed value using the 45 high quality undervalued stocks
• Strengthen your income stream by reviewing opportunities with higher yields through the 9 dividend fortresses
• Prioritise resilience by searching for companies with sturdier finances via the solid balance sheet and fundamentals stocks screener (47 results)

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.