12 Best Artificial Intelligence Stocks To Invest In Under $10

7. Cerence Inc. (NASDAQ:CRNC)

Share Price as of November 27: $6.47

Number of Hedge Fund Holders: 10

Cerence Inc. (NASDAQ:CRNC) provides AI-powered virtual assistant solutions for the mobility and transportation industry. Its solutions include speech recognition, natural language understanding, and text-to-speech technologies, enhancing the user experience in vehicles. The company has a strong focus on GenAI and LLMs. Its proprietary AI platform, powered by LLMs, is driving innovation in the automotive industry.

The recent launch of CaLLM Edge, the first LLM running in automotive on the Edge, enables advanced and simplified voice interaction, even when the vehicle is offline. This groundbreaking technology, developed in collaboration with Microsoft, demonstrates Cerence Inc.’s (NASDAQ:CRNC) commitment to pushing the boundaries of in-vehicle AI.

Its strong financial performance and strategic focus on AI position the company for continued growth and success in the years to come. Cerence Inc. (NASDAQ:CRNC) has reported its FQ4 and full-year 2024 results, highlighting a strategic focus on cost reduction and operational efficiency. The company exceeded FQ4 2024 revenue expectations, generating $54.81 million, driven by decreased operating expenses, although marking a 32.14% year-over-year revenue drop.

By leveraging LLMs, Cerence Inc. (NASDAQ:CRNC) is transforming the in-car experience. The company’s AI solutions enable natural language interaction, allowing drivers to control various vehicle systems using simple voice commands. The company is poised to drive future growth and create long-term value for shareholders.

Meridian Contrarian Fund stated the following regarding Cerence Inc. (NASDAQ:CRNC) in its Q2 2024 investor letter:

“Cerence Inc. (NASDAQ:CRNC) develops human-automotive interface software that provides drivers and passengers with applications ranging from infotainment to safety and, eventually, autonomous driving. We became shareholders when the company was spun off from a previous holding and the market assigned little value to the new company. The stock performed strongly for us initially and we were able to harvest significant profits. We maintained a position despite weak results over the past two years due to our belief that Cerence’s large market share, with software in over 50% of cars globally, should lead to significant growth opportunities. During the quarter the stock pulled back on missed earnings and reduced full-year and long-term forecasts. This continued poor fundamental performance convinced us that we might be wrong about the market opportunity, and we sold our entire position.”