Yahoo Finance Cerence (CRNC) Expands Automotive Footprint With Chat Pro
Cerence CRNC is expanding its footprint in the automotive industry with the deployment of Cerence Chat Pro, an advanced, automotive-grade ChatGPT integration, across Volkswagen Group’s VWAGY European lineup.
The move marks a significant milestone as Volkswagen integrates Cerence’s advanced, automotive-grade ChatGPT solution into its in-car voice assistant, Intelligent Digital Assistant (IDA).
The collaboration, initially announced at CES 2024, brings generative AI-powered enhancements to drivers — enabling engaging and conversational interactions through the IDA voice assistant.
Cerence Chat Pro, now available in five languages, offers seamless integration of vehicle command and control features with access to real-time, cloud-based information, enhancing in-car experience across various Volkswagen, Cupra, Seat and Skoda models.
Cerence Inc. Price and Consensus
Cerence Inc. price-consensus-chart | Cerence Inc. Quote
Strong Partner Base Aids Cerence’s Prospects
The latest move bodes well with Cerence’s commitment to advancing automotive AI technology, as evidenced by the integration of Cerence Chat Pro into Volkswagen’s European lineup, enhancing in-car voice assistants with advanced generative AI capabilities.
Cerence’s innovative portfolio has been helping it to expand clientele. In addition to Volkswagen, Cerence also expanded its client base with the likes of BMW Group, NVIDIA NVDA and Microsoft MSFT to further enhance its footprint in the automotive industry.
The company recently announced BMW Group’s integration of Cerence Audio AI, including Emergency Vehicle Detection, enhancing safety in the BMW Personal Pilot L3 automated driving system by enabling reliable detection and response to approaching emergency vehicles.
In March, Cerence introduced the Cerence Automotive Large Language Model (CaLLM), powered by NVIDIA, to transform in-car computing platforms, address automaker challenges and enhance user experiences with generative AI capabilities.
The collaboration with Microsoft integrates OpenAI’s ChatGPT model into vehicles through Microsoft Azure, enhancing in-car user experiences with Cerence’s automotive technology and Microsoft’s cloud capabilities.
Conclusion
The stock has plunged 84.4% year to date compared with the Zacks Computer & Technology sector’s rise of 24%. The underperformance was caused by stiff competition across the automotive voice assistance market, which negatively impacted the company’s top line.
Nevertheless, Cerence is boosting its top-line growth through the continued expansion of its clientele in the automotive industry.
This Zacks Rank #3 (Hold) company expects revenues between $66 million and $72 million for third-quarter fiscal 2024.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for revenues is pegged at $70.33 million, indicating year-over-year growth of 14.06%.
The Zack Consensus mark for earnings is pegged at 5 cents per share, unchanged in the past 30 days.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Volkswagen AG Unsponsored ADR (VWAGY) : Free Stock Analysis Report
Cerence Inc. (CRNC) : Free Stock Analysis Report
