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Nvidia (NVDA) To Power Cerence’s (CRNC) Transition To Agentic AI Solutions

Cerence Inc., an AI voice technology company that serves the automotive sector, just announced a partnership with Nvidia. The partnership involves improving the Large Language Models (LLMs) that the company uses in the voice assistance technology in vehicles. The stock was up as much as 70% during the first hour of trading.

Cerence Inc. was established in 2019 after a spin-off from Nuance Communications, a firm that itself was two years later acquired by Microsoft for $19.7 billion. It develops AI-powered virtual assistance for automobiles with the intention of helping drivers better interact with their vehicles. The firm serves over 60 vehicle manufacturers across the globe. Its technology can recognize over 70 different languages and dialects, in addition to incorporating facial recognition and compatibility with both Google’s and Apple’s voice assistants.

Cerence’s voice assistance technology integrates with the vehicle operating systems of various automobile manufacturers, including BMW, Fiat, and Mercedes. The company’s most recent product, CaLLM Edge, helps improve the performance of various vehicle systems thanks to its low latency. It also runs on local processors, thus reducing the reliance on cloud connectivity. For the driver, this translates to better voice recognition, especially in noisy environments.

The current collaboration with Nvidia pertains to this CaLLM technology as well. CaLLM will now be able to use Nvidia’s software to improve computing power, thus helping the company offer Agentic AI to vehicle users. According to Nils Schanz, who is the vice president of the company, there is an increased demand from drivers for generative AI-backed solutions, and this partnership will enable the company to cater to that demand.

Just yesterday, the company also announced a multi-year agreement with Jaguar Land Rover (JLR), showcasing how the company continues to serve a large set of clientele. The Nvidia partnership will likely help the company strengthen these relationships while improving its technology.

Nvidia is 5th on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 193 hedge fund portfolios held NVDA at the end of the third quarter which was 179 in the previous quarter. While we acknowledge the potential of NVDA as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. This article was originally published at Insider Monkey.

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He Recommended Nvidia at 80 cents. Here’s His First Pick for 2025.

Michael Robinson is a Silicon Valley legend …

And a visionary with a history of spotting profitable tech trends far ahead of time.

Like AI giant Nvidia …

Which he spotted at a split-adjusted 80 cents back in 2016.

The stock is up 17,062% since his recommendation.

Michael was nearly laughed out of the room when he told Fox Business’ hosts that Apple would hit $1,000.

Today, adjusted for stock splits, Apple is well over $2,800.

He met with some of the earliest Bitcoin investors, like the Winklevoss twins, in 2013.

Click to continue reading…