10 Undervalued Quantum Computing Stocks to Buy Now

4. Teradata Corporation (NYSE:TDC)

Number of Hedge Fund Holders: 26

Forward Price to Earnings (P/E) ratio: 9.81

Teradata Corporation (NYSE:TDC) provides a connected hybrid cloud analytics platform, helping businesses leverage their data for large-scale analysis. With two main segments, Product Sales and Consulting Services, the company offers solutions like the Teradata Vantage platform that handles data both in-cloud and on-site. It also serves industries such as financial services, healthcare, and telecom through direct sales and partners.

For Q4 ended December 31, 2024, Teradata Corporation (NYSE:TDC) posted earnings of $0.53 per share, beating the expected $0.44. Its Cloud Annual Recurring Revenue grew 18% year-over-year in constant currency to $609 million, though total ARR dropped 4%. The company continues shifting toward a hybrid AI platform for enterprise use, with both cloud and on-premises options to meet growing AI demands, including quantum computing applications. Teradata has been developing various Generative AI proof-of-concepts to strengthen its position in this fast-changing area.

For full-year 2025, Teradata Corporation (NYSE:TDC) predicts a 14% to 18% growth in cloud ARR, though total revenue will likely fall 4%-6% year-over-year. The company expects EPS between $2.15-$2.25 and plans to give back over 50% of its free cash flow (estimated at $250-$280 million) to shareholders through buybacks.

In the future, upcoming product innovations include the Enterprise Vector Store, which helps in the management of enterprise-scale vector data, and new on-premises AI features. Moreover, working with NVIDIA on GPU-accelerated AI workloads and integrating with AWS, Google Cloud, and Microsoft Fabric strengthens the company’s position in AI and hybrid cloud solutions. As AI adoption is increasing and quantum computing is becoming crucial to businesses, Teradata Corporation (NYSE:TDC) stays strong in meeting growing needs for data management and AI insights, while also being one of the cheap stocks to buy.