Why These 15 AI Stocks Are Skyrocketing So Far In 2025

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3. Cerence Inc (NASDAQ:CRNC)

Number of Hedge Fund Holders In Q3 2024: 10

Cerence (NASDAQ:CRNC) is a tech company that specializes in AI-powered virtual assistants. It is mainly geared towards the automotive and transportation markets, for things like speech recognition.

The stock has been surging so far in 2025 due to its announcement of a collaboration with Nvidia to make its large language models better for automotive applications. Cerence will use Nvidia’s AI Enterprise platform to improve the performance of its CaLLM solutions.

Moreover, it has pivoted significantly to generative AI technologies and launched six of these AI solutions. That helped it secure 10 customer wins in FY2024. Cerence also implemented a plan aimed at saving $35 million to $40 million annually.

FY 2024 revenue is at $331.5 million for the full year, up from $294.5 million in 2023. However, Q4 revenue declined year-over-year to $54.8 million from $80.8 million. It also posted a significant GAAP net loss of $588 million for FY24 due to goodwill impairment charges.

Adjusted EBITDA was -$1.9 million for Q4.

It expects $236 million to $247 million in FY25 revenue.

The consensus price target of $11.6 implies 14.3% downside risk.

CRNC stock is up 70.74% year-to-date.

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