Why These 15 Software Stocks Are Skyrocketing So Far in 2025

Page 9 of 14

6. Cerence Inc (NASDAQ:CRNC)

Number of Hedge Fund Holders In Q3 2024: 10

Cerence Inc (NASDAQ:CRNC) makes AI-powered virtual assistants and conversational AI products for automakers.

The stock is up significantly after it reported a revenue of $50.9 million, which was down 63% year-over-year but exceeded the high end of its guidance. Free cash flow was positive at $7.9 million.

Cerence reduced operating expenses by $29 million year-over-year through layoffs and office consolidations. In turn, gross margins improved to 65%.

Cerence also secured six new design wins for core products and two generative AI contracts with major automakers and launched CaLLM Edge, the first large language model (LLM) for offline automotive use. It maintains full-year guidance of $236–247 million in revenue and projected $20 million of fixed contracts.

The consensus price target of $8.66 implies 36.95% downside.

CRNC stock is up 75.03% year-to-date.

Page 9 of 14