Shares in Cerence AI (CRNC), a rival of SoundHound AI (SOUN), zoomed on Friday amid the announcement of an automotive collaboration with chipmaker Nvidia (NVDA). While Cerence stock soared, SoundHound stock also gained despite the news.
Both Cerence and SoundHound sell voice recognition software that uses artificial intelligence. Nuance Communications spun off Cerence in October 2019. Microsoft (MSFT) acquired Nuance in 2022. Further, Nvidia is an investor in SoundHound.
Cerence said Nvidia’s artificial intelligence software platform will speed development of automotive industry large language models. The software maker says the Nvidia tools will be part of the Cerence Automotive Large Language Model.
↑
X
Software Sector AI Monetization In 2025: What Investors Can Expect
SoundHound Stock: Rival Gains
“By optimizing the performance of our CaLLM family of language models, we are delivering cost savings and improved performance to our automaker customers, who are running quickly to deploy generative AI-powered solutions to their drivers,” said Nils Schanz, Cerence executive vice president, in a news release.
Many software makers are focused on building industry-specific small language models.
On the stock market today, Cerence stock zoomed 66% to near 13.20. SoundHound stock advanced 2.5% to 20.67. Nvidia stock rose 3.6% to 143.32. Nvidia stock surged in 2024.
Also, Cerence stock plunged in May on a disappointing royalty outlook and lowered guidance.
According to Burlington, Mass.-based Cerence, more than 500 million cars on the road utilize its AI conversational voice AI technology.
While Cerence builds AI virtual assistants focused on the automobile market, SoundHound’s conversational chatbot customers have mostly been in the restaurant industry. SoundHound’s roots are in identifying songs played on the radio or music streaming.
AI In CES Spotlight
Nvidia is expected to highlight its AI software development platform at the CES technology trade show, which starts on Jan. 7.
Small-cap SoundHound stock soared over 850% in 2024.
Cerence stock holds an IBD Relative Strength Rating of 97 while the RS rating of SoundHound stock is 99.
Further, SoundHound is among AI stocks to watch.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
YOU MAY ALSO LIKE:
Learn The Best Trading Stock Rules From IBD’s Investor’s Corner
Want To Trade Options? Try Out These Strategies
Monitor IBD’s “Breaking Out Today” List For Companies Hitting New Buy Points
IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today
