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Cerence Boosts Skoda's In-Car Experience: Should You Buy CRNC Stock?
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Cerence’s (CRNC - Free Report) shares have plunged 87.5% year to date against the broader Zacks Computer & Technology sector’s return of 19.4% and the Zacks IT Services industry’s rise of 7.7%.
The underperformance was due to slowing momentum in the automotive industry along with stiff competition in the automotive Generative AI (GenAI) market, which affected CRNC’s top-line growth.
However, Cerence is well-positioned to benefit from advancements in GenAI, a growing clientele and a strong partner network.
Its collaboration with Skoda, a well-known Volkswagen (VWAGY - Free Report) brand, is noteworthy as the deal aims to enhance the driving experience by integrating Cerence Chat Pro with Skoda’s in-car voice assistant, Laura.
Skoda drivers and passengers can interact conversationally with their in-car assistant powered by Cerence Chat Pro. This integration offers accurate responses to queries and simplifies navigation, enabling drivers to quickly and safely access essential features.
This latest move aligns with Cerence’s commitment to advancing automotive GenAI technology.
However, do these GenAI-related efforts make CRNC stock attractive to investors? Let’s analyze.
Robust Partner Base Aids Cerence’s Prospects
CRNC recently partnered with smart, the premium all-electric brand, to implement its GenAI solutions. Cerence Car Knowledge allows drivers to explore features via voice commands, while Cerence Chat Pro enables engaging conversations with smart’s in-car assistant, providing accurate responses to queries.
The company recently unveiled a collaboration with Audi, part of the Volkswagen Group. Per the deal, Audi will leverage GenAI from Cerence to expand the capabilities of its in-car assistant in MIB 3-equipped models, starting with model year 2021 through back-end activation.
The company is expanding its footprint in the automotive industry with the deployment of Cerence Chat Pro across Volkswagen Group’s European car lineup. This marks a significant milestone as Volkswagen integrates Cerence Chat Pro into its in-car voice assistant, Intelligent Digital Assistant (IDA).
CRNC’s innovative product portfolio helped expand its clientele beyond Volkswagen to include BMW Group, NVIDIA (NVDA - Free Report) and Microsoft (MSFT - Free Report) , further strengthening its presence in the automotive industry.
CRNC announced BMW Group's integration of Cerence Audio AI, including Emergency Vehicle Detection, into the BMW Personal Pilot L3 system, enhancing safety by detecting approaching emergency vehicles.
In March, it launched the Cerence Automotive Large Language Model (CaLLM), powered by NVIDIA, to transform in-car computing and enhance user experiences with generative AI.
The collaboration with Microsoft integrates OpenAI’s ChatGPT model into vehicles through Microsoft Azure, enhancing in-car user experiences by merging Cerence’s automotive technology with Microsoft’s cloud capabilities.
What Investors Should Do with CRNC Stock?
CRNC’s shares have been suffering from intense competition across the automotive voice assistance domain.
However, Cerence is well poised to gain from efforts to enhance GenAI capabilities along with a growing partner base and an expanding clientele.
The Zacks Consensus Estimate for 2024 revenues is currently pegged at $324.83 million, indicating 10.31% year-over-year growth. Earnings for the full year are pegged at 92 cents, suggesting an improvement from 32 cents reported in 2023.
CRNC stock is also cheap, as suggested by the Value Score of A.
Image: Bigstock
Cerence Boosts Skoda's In-Car Experience: Should You Buy CRNC Stock?
Cerence’s (CRNC - Free Report) shares have plunged 87.5% year to date against the broader Zacks Computer & Technology sector’s return of 19.4% and the Zacks IT Services industry’s rise of 7.7%.
The underperformance was due to slowing momentum in the automotive industry along with stiff competition in the automotive Generative AI (GenAI) market, which affected CRNC’s top-line growth.
However, Cerence is well-positioned to benefit from advancements in GenAI, a growing clientele and a strong partner network.
Its collaboration with Skoda, a well-known Volkswagen (VWAGY - Free Report) brand, is noteworthy as the deal aims to enhance the driving experience by integrating Cerence Chat Pro with Skoda’s in-car voice assistant, Laura.
Skoda drivers and passengers can interact conversationally with their in-car assistant powered by Cerence Chat Pro. This integration offers accurate responses to queries and simplifies navigation, enabling drivers to quickly and safely access essential features.
Cerence Inc. Price and Consensus
Cerence Inc. price-consensus-chart | Cerence Inc. Quote
This latest move aligns with Cerence’s commitment to advancing automotive GenAI technology.
However, do these GenAI-related efforts make CRNC stock attractive to investors? Let’s analyze.
Robust Partner Base Aids Cerence’s Prospects
CRNC recently partnered with smart, the premium all-electric brand, to implement its GenAI solutions. Cerence Car Knowledge allows drivers to explore features via voice commands, while Cerence Chat Pro enables engaging conversations with smart’s in-car assistant, providing accurate responses to queries.
The company recently unveiled a collaboration with Audi, part of the Volkswagen Group. Per the deal, Audi will leverage GenAI from Cerence to expand the capabilities of its in-car assistant in MIB 3-equipped models, starting with model year 2021 through back-end activation.
The company is expanding its footprint in the automotive industry with the deployment of Cerence Chat Pro across Volkswagen Group’s European car lineup. This marks a significant milestone as Volkswagen integrates Cerence Chat Pro into its in-car voice assistant, Intelligent Digital Assistant (IDA).
CRNC’s innovative product portfolio helped expand its clientele beyond Volkswagen to include BMW Group, NVIDIA (NVDA - Free Report) and Microsoft (MSFT - Free Report) , further strengthening its presence in the automotive industry.
CRNC announced BMW Group's integration of Cerence Audio AI, including Emergency Vehicle Detection, into the BMW Personal Pilot L3 system, enhancing safety by detecting approaching emergency vehicles.
In March, it launched the Cerence Automotive Large Language Model (CaLLM), powered by NVIDIA, to transform in-car computing and enhance user experiences with generative AI.
The collaboration with Microsoft integrates OpenAI’s ChatGPT model into vehicles through Microsoft Azure, enhancing in-car user experiences by merging Cerence’s automotive technology with Microsoft’s cloud capabilities.
What Investors Should Do with CRNC Stock?
CRNC’s shares have been suffering from intense competition across the automotive voice assistance domain.
However, Cerence is well poised to gain from efforts to enhance GenAI capabilities along with a growing partner base and an expanding clientele.
The Zacks Consensus Estimate for 2024 revenues is currently pegged at $324.83 million, indicating 10.31% year-over-year growth. Earnings for the full year are pegged at 92 cents, suggesting an improvement from 32 cents reported in 2023.
CRNC stock is also cheap, as suggested by the Value Score of A.
Cerence currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.