Technology is advancing at an unprecedented rate, driving rapid change and progress across industries in ways we’ve never seen before. From artificial intelligence (AI) to robotics, cloud computing, and beyond, these technologies aren’t just progressing in silos. They’re converging to create a new wave of business opportunities, one that’s shaping the future of almost every sector.

In this article, I have discussed three companies that are in charge of this technological revolution: Teradata Corporation (TDC), PagerDuty, Inc. (PD), and Arteris, Inc. (AIP). Each combines an ambitious vision with proven execution backed by strategic partnerships with industry giants.

As businesses and industries continue to evolve, driven by technological advances, the potential for growth in this space is immense. AI is revolutionizing everything from automation to data analytics, while cloud computing is redefining how companies operate on a global scale. These breakthroughs are paving the way for the next wave of innovation and groundbreaking developments in the metaverse, cryptocurrency, and biotechnology.

According to Statista, the global IT Services market is poised to grow from $1.51 trillion this year to $1.88 trillion by 2029 at a CAGR of 5.6%. Meanwhile, the U.S. technology market alone is forecasted to hit $669.43 billion by 2031, exhibiting a CAGR of 8.4%. These numbers reflect robust market potential and signal a lucrative opportunity for forward-thinking investors to ride the wave of this technological evolution.

With that in mind, let’s look at the fundamentals of the three tech stocks in detail.

Teradata Corporation (TDC)

TDC provides a connected multi-cloud data platform for enterprise analytics. Its flagship solution, Teradata Vantage, operates seamlessly across on-premises, private, and public cloud environments, streamlining data and analytics for various industries across seven global regions, including North America, Europe, and Asia Pacific.

On December 03, 2024, the company announced an enhanced partnership with Amazon Web Services (AWS) to deliver rapid-start generative AI (Gen AI) use cases through Teradata VantageCloud on AWS, integrated with Amazon Bedrock. This integration allows enterprise customers to leverage their chosen foundational models with data in VantageCloud, accessing over 60 Gen AI use cases across various industries.

By streamlining implementation, the collaboration helps boost customer experiences, improve employee productivity, and optimize business operations, enabling faster ROI and enhanced business value for VantageCloud users.

During the third quarter, which ended September 30, 2024, TDC’s recurring revenue increased 3% year-over-year to $372 million, while its total revenue amounted to $440 million. Its non-GAAP operating income rose 57% from the year-ago value to $99 million.

The company’s non-GAAP net income increased 56% year-over-year to $67 million, while its non-GAAP EPS grew 64.3% from the prior-year quarter to $0.69.

Analysts expect TDC’s EPS for the fiscal year 2024, which ended December 31, to increase by 12.8% year-over-year to $2.33. The consensus EPS estimate of $0.64 for the current quarter (ending March 2025) indicates an 11.9% year-over-year growth. The company has an impressive earnings surprise history, as it surpassed the consensus EPS estimates in each of the trailing four quarters.

However, the stock has lost marginally year-to-date to close the trading session at $30.59.

TDC’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

TDC also has an A grade for Growth, Value, and Quality. Among the 78 stocks in the Technology – Services industry, it is ranked first.

In addition to the POWR Rating grades I’ve just highlighted, you can see the TDC ratings for Momentum, Stability, and Sentiment here.

PagerDuty, Inc. (PD)

PD is engaged in a digital operations management platform that manages urgent and mission-critical work for digital businesses. The platform offers on-call management, event intelligence, incident response, business visibility, and advanced analytics solutions for addressing digital operations management requirements.

On December 03, 2024, the company unveiled new generative AI (genAI) and automation features within PagerDuty Advance, integrated across the PagerDuty Operations Cloud platform in collaboration with Amazon Web Services (AWS).

These advanced AI capabilities enable operations teams to leverage generative AI and automation, driving faster innovation, enhanced uptime, and improved customer experiences. Also, this development strengthens PD’s position in the market by offering cutting-edge solutions that support operational efficiency and growth.

PD’s revenue increased 9.4% year-over-year to $118.95 million in the fiscal third quarter ended October 31, 2024. Its gross profit grew 10.8% from the year-ago value to $98.68 million. Non-GAAP operating income improved 66.3% from the prior-year period to $24.99 million. The company’s non-GAAP attributable net income came in at $23.72 million or $0.25 per share, indicating an increase of 23.6% and 25% year-over-year, respectively.

Street expects PD’s revenue for the fourth quarter (ending January 2025) to increase 7.6% year-over-year to $119.53 million, while its EPS for the same period is expected to come in at $0.16. In addition, PD has topped consensus EPS estimates in each of the trailing four quarters, which is impressive.

The stock has gained marginally year-to-date to close the last trading session at $18.30.

It’s no surprise that PD has an overall rating of B, equating to a Buy in our POWR Ratings system. It also has a B grade for Growth, Value, and Quality. Within the Technology – Services industry, it is ranked #9.

Beyond what is stated above, we’ve also rated PD for Momentum, Stability, and Sentiment. Get all PD ratings here.

Arteris, Inc. (AIP)

AIP provides semiconductor system IP, including interconnect and other intellectual property (collectively, System IP) and SoC Integration Automation software (SIA) solutions to automotive, communications, consumer electronics, enterprise computing, and industrial industries.

On December 03, 2024, the company announced that Menta has integrated its Arteris network-on-chip (NoC) IP into the MOSAICS-LP chiplet platform, addressing performance and area efficiency challenges for edge and IoT computing applications, including AI. This deployment reflects the increasing demand for AIP solutions in the industry.

On November 12, AIP partnered with MIPS, a leading provider of efficient and configurable compute core IP, to create a pre-verified reference platform. This collaboration aims to accelerate RISC-V-based chip development for automotive, enterprise computing, and edge AI applications while minimizing risks and development time.

Moreover, it emphasizes AIP’s role in supporting the broader ecosystem with RISC-V ready NoC interconnects that enhance performance, reduce SoC power, and improve scalability for future electronic innovations.

For the third quarter that ended September 30, 2024, AP’s total revenue increased 10.8% year-over-year to $14.71 million, while its gross profit rose 10.4% from the year-ago value to $13.25 million. The company’s annual contract value (ACV), plus royalties, came in at $60.50 million, up 6% year-over-year. In addition, it reported a free cash flow of $1.64 million compared to an outflow of $13.83 million recorded last year.

Analysts expect AP’s revenue for the fourth quarter (ended December 2024) to increase 22.7% year-over-year to $15.34 million. The company’s revenue for the fiscal year 2025 is expected to grow 19.3% year-over-year to $68.37 million. Moreover, the company topped the consensus revenue estimates in three of the trailing four quarters.

AIP’s stock has surged 130.5% over the past year and 12.7% year-to-date to close the last trading session at $11.48.

AIP’s POWR Ratings reflect this robust outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.

AIP has an A grade for Sentiment and a B for Quality. It is ranked #8 among 90 stocks in the Semiconductor & Wireless Chip industry. To access AIP’s other ratings for Growth, Value, Momentum, and Stability, click here.

What To Do Next?

Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:

3 Stocks to DOUBLE This Year >

TDC shares were trading at $31.52 per share on Tuesday afternoon, up $0.93 (+3.04%). Year-to-date, TDC has gained 1.19%, versus a 2.66% rise in the benchmark S&P 500 index during the same period.

About the Author: Shweta Kumari

Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions. More...

More Resources for the Stocks in this Article