Cerence shares more than double on AI deal expansion with Nvidia

Cerence

03/01/2025 18:43

** Cerence's  CRNC.O  shares last up 115.5% at $17.09 on Fri
after co announced expanded collaboration with Nvidia  NVDA.O 
for its artificial-intelligence automotive product
    ** CRNC shares jumped as much as 150.8% to $19.89 to highest
levels since early Feb 2024
** Burlington, Massachusetts-based software firm early Fri said
NVDA to help power its language models for in-vehicle computing
technology, designed to develop cars that respond to drivers'
voices
    ** Through the collaboration, Cerence said expects to help
deliver advanced performance, faster in-vehicle assistance, and
enhanced privacy and security
    ** More than 121 mln CRNC shares have traded so far, marking
busiest session on record. Stock's 10-DMA volume is about 1.9
mln shares, per LSEG data
    ** Co has current market cap of roughly $730 mln and 40 mln
shares of public float
    ** In 2024, stock lost 60% of its value
    ** Of 7 analysts covering CRNC, 1 rates "buy", rest
recommend "hold"; median PT of $6 up from $4.25 on Oct 3

(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))