Why Shares of Cerence Surged 45% in December

Shares of artificial intelligence (AI) company Cerence (NASDAQ: CRNC) surged 45.4% in December, according to data provided by S&P Global Market Intelligence. It was a significant improvement in the stock price following a disappointing start as a publicly listed company. The move largely came down to a positive set of fourth-quarter results and outlook given in the middle of December.

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Cerence, which was was spun off of Nuance Communications (NASDAQ: NUAN) at the start of October, focuses on AI solutions for the automotive market, such as voice, eye tracking, and even gesture recognition. Customers include automakers Audi, BMW, Daimler, Ford, GM, and Toyota.