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

Core Insights - Teradata Corporation has launched its AI Unlimited platform for public preview via Microsoft's Fabric Workload Hub, enhancing its competitive position in the AI and data analytics market [1][2] Company Developments - Teradata AI Unlimited is a serverless compute engine designed to accelerate AI innovations for enterprises, integrating advanced analytics and AI/ML capabilities into Microsoft's data analytics platform [2] - Users can access Teradata AI Unlimited on Microsoft Fabric without affecting existing Teradata systems, supporting open data formats and ensuring compatibility with other tools [3] Financial Performance - Teradata's shares have declined 32.2% year to date, underperforming the broader Zacks Computer & Technology Sector's growth of 26.3% and the Computer-Storage Devices industry's rise of 13.6% [4] - The company has struggled to capitalize on the demand for cloud data analytics, with its stock performance lagging behind Oracle, which has returned 79.2%, while outperforming Snowflake, which dropped 34.5% [5] Growth Prospects - Teradata's cloud segment shows promising growth, with public cloud's annual recurring revenues increasing by 26% year over year to $570 million, driven by demand for Teradata VantageCloud and ClearScape Analytics [7] - The integration with NVIDIA's AI platform enhances Teradata's offerings, providing scalable AI capabilities for processing large data sets [8] Earnings Estimates - For FY24, Teradata expects non-GAAP earnings between $2.30 and $2.234 per share, with total revenues projected to decline by 2-4% year over year [9] - The Zacks Consensus Estimate for FY24 revenues is $1.75 billion, indicating a 4.41% year-over-year decline, while the consensus for earnings is $2.30 per share, reflecting a 2.68% increase over the past 30 days and 11.11% year-over-year growth [10]