Back to top

Image: Bigstock

Teradata AI Unlimited Now Available for Public: Is the Stock a Buy?

Read MoreHide Full Article

Teradata Corporation (TDC - Free Report) has revealed that its AI Unlimited platform is now accessible for public preview via Microsoft’s (MSFT - Free Report) Fabric Workload Hub.

Teradata AI Unlimited is a serverless compute engine that enhances the speed of AI innovations for enterprises.

Teradata's ClearScape Analytics and AI capabilities, now accessible through Microsoft Fabric, give it a competitive edge in the rapidly growing AI and data analytics space.

This integration brings advanced analytics and AI/ML capabilities to Microsoft’s end-to-end data analytics platform, enabling users to explore, experiment and operationalize AI projects at scale.

Users can try Teradata AI Unlimited on the Microsoft Fabric Workload Hub, using analytic functions without impacting their existing Teradata systems.

The integration supports open data formats in OneLake and open table architectures, ensuring better compatibility with other tools.

TDC Shares Underperform Industry & Sector

TDC shares have declined 32.2% year to date (YTD), underperforming the broader Zacks Computer & Technology Sector’s growth of 26.3% and the Zacks Computer- Storage Devices industry’s rise of 13.6%.

The decline in share price can be attributed to its slower revenue growth, coupled with stiff competition from Oracle (ORCL - Free Report) and Snowflake (SNOW - Free Report) , who are aggressively expanding their cloud and data analytics offerings.

Teradata has struggled to fully capitalize on the growing demand for cloud data analytics, which has affected its stock performance.

The company's shares have underperformed Oracle but beat Snowflake YTD. While ORCL shares have returned 79.2%, SNOW dropped 34.5%.

TDC’s Prospects Rides on Cloud and AI Solutions

Teradata provides a comprehensive analytical solution through its Teradata Vantage platform and VantageCloud with ClearScape Analytics. This integrated solution provides significant scale, speed and security across various environments, including on-premises, public/private clouds and hybrid setups.

TDC highlights promising growth prospects, particularly in its cloud segment. Public cloud’s annual recurring revenues at the third-quarter end surged by 26% year over year to $570 million, driven by robust demand for Teradata VantageCloud and ClearScape Analytics.

Teradata’s advancements in AI capabilities, particularly through enhancements to its ClearScape Analytics platform, have been well received and position the company as a key player in the AI space.

TDC’s integration with NVIDIA’s AI platform further strengthens its offering by providing high-performance, scalable AI capabilities, helping clients process and analyze large data sets more effectively.

These advancements are part of Teradata's broader strategy to position itself as a strategic AI partner for its customers, particularly as demand for AI-powered data analytics continues to grow.

TDC’s FY24 Earnings Estimates Revision Trend Up

For the full year 2024, Teradata anticipates non-GAAP earnings between $2.30 and $2.234 per share and total revenues to be down 2-4% from the year-ago reported figure.

The Zacks Consensus Estimate for the full year 2024 revenues is pegged at $1.75 billion, indicating a 4.41% decline on a year-over-year basis.
 
The consensus mark for earnings is $2.30 per share, implying a 2.68% increase over the past 30 days and 11.11% year-over-year growth.

Teradata’s Zacks Rank

TDC currently carries Zacks Rank #2 (Buy). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in