Cerence CRNC shares have returned 19.1% in the past month, outperforming the broader Zacks Computer and Technology sector’s appreciation of 3.6% and the Zacks Computers – IT Services industry’s return of 3.4%.
The outperformance can be attributed to CRNC’s good position in generative AI (GenAI), an expanding clientele, and a strong partner network. Cerence’s strong portfolio and growing global presence in the automotive industry, all supported by a solid network of partners, have been key catalysts.
CRNC’s innovative product portfolio helps in expanding its clientele that includes Volkswagen, Audi, Seat, and BMW Group, among others. Its rich partner base that includes NVIDIA NVDA and Microsoft MSFT strengthens its presence in the automotive industry.
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Cerence’s prospects ride on an expanding automotive clientele. In the third quarter of fiscal 2024, CRNC secured eight new OEM design wins, including partnerships with major automakers which showcased the growing adoption of its AI-powered solutions.
It also saw a significant increase in the number of cars equipped with Cerence’s technology, with the usage of connected services rising 19% over the trailing 12-month period.
In June, CRNC announced that Audi, part of the Volkswagen Group, will deploy its GenAI, Cerence Chat Pro, to enhance in-car assistant capabilities in Audi vehicles equipped with the MIB 3 infotainment platform and future models.
Its collaboration with Skoda, a well-known Volkswagen brand, is noteworthy as the deal aims to enhance the driving experience by integrating Cerence Chat Pro with Skoda’s in-car voice assistant, Laura.
Skoda drivers and passengers can interact conversationally with their in-car assistant powered by Cerence Chat Pro. This integration offers accurate responses to queries and simplifies navigation, enabling drivers to quickly and safely access essential features.
Cerence’s collaboration with Smart aims at developing AI-powered solutions for enhanced in-car experiences in Concept #5, leveraging GenAI to create intuitive, voice-controlled features for Smart’s next-generation vehicles.
The introduction of the Cerence Automotive Large Language Model (CaLLM), powered by NVIDIA, transforms in-car computing platforms by tackling automaker challenges and enhancing user experiences through advanced generative AI capabilities.
CRNC’s collaboration with Microsoft further amplifies its technological edge by integrating OpenAI’s ChatGPT model into vehicles via Microsoft Azure. This integration aims to enhance in-car user experiences by combining Cerence’s automotive technology with Microsoft’s cloud capabilities.
Tuya TUYA recently announced a partnership with Cerence to provide multi-lingual text-to-speech for its cloud developer platform designed specifically for two-wheeled vehicles, including motorcycles, e-bikes, and more.
