20 Hidden Gem AI Stocks

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10. Cerence Inc. (NASDAQ:CRNC)

Number of Hedge Fund Holders: 14

Cerence Inc. (NASDAQ:CRNC) provides AI powered virtual assistants for the mobility/transportation market in the United States, Other Americas, Germany, Europe, Middle East, Africa, Japan, and Other Asia-Pacific. Stefan Ortmanns, the CEO of the firm, said during the second quarter earnings call that there were three key differentiators that distinguish the AI offering of his firm from others. Per the CEO, the first was a lengthy history and deep customer relationships in the automotive industry. The second was a strong IP position, approximately 700 patents and automotive specific data supporting an end to end solution that improved all aspects of the in-car user experience from the moment a driver began speaking all the way through to task completion. The third was a customer-centric approach to business.

TD Cowen analyst Jeff Osborne recently lowered the price target on Cerence Inc. (NASDAQ:CRNC) stock to $10 from $12 and kept a Buy rating on the shares. The investment firm said while topline growth for FY25 was talked down with the framework due to less emphasis on the Pro Services segment, Cowen saw investors more focused on profits and cash.

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