Cerence Stock Doubles to 11-Month High On NVIDIA Partnership For Auto AI Models: Retail Sentiment Peaks

Cerence Inc. (CRNC) shares surged more than 140% on Friday, reaching levels not seen since February 2024, after the company announced it would expand its collaboration with Nvidia to develop its artificial intelligence (AI) vehicle product lineup.

At the time of writing, it was the top trending ticker on Stocktwits.

The SoundHound AI (SOUN) rival said Nvidia's artificial intelligence software platform will speed up the development of its automotive large language models, which power in-car voice assistants. 

This includes both the cloud-based Cerence Automotive Large Language Model (CaLLM) and the smaller embedded version, CaLLM Edge. 

The collaboration will use NVIDIA's AI tools, such as AI Enterprise and DRIVE AGX Orin, to improve performance and speed.

Cerence Inc. Sentiment and Message Volume on Jan 3 as of 12:20 p.m. ET | Source: Stocktwits

On Stocktwits, retail activity around the stock hit a year-high with sentiment hitting a record in the ‘extremely bullish’ (97/100) zone and message volume peaking at ‘extremely high’ levels. 

Some retail investors on the platform forecast that Cerence's financial health may make its upside higher than that of SoundHound AI, given that Nvidia is an investor in the latter. 

While one user took the opportunity to book profits, another pointed out the surge seemed like an overreaction given that Cerence already has an existing relationship with Nvidia. 

Both Cerence and SoundHound AI sell voice recognition software that uses AI. 

The stock's impressive uptick comes as a remarkable recovery, given the stock was down over 6% in 2024.

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