7 Best Small Cap AI Stocks to Invest in According to Hedge Funds

3. Cerence Inc. (NASDAQ:CRNC)

Market Capitalization as of September 18: $505.11 million

Number of Hedge Fund Holders: 16

Cerence Inc. (NASDAQ:CRNC) is one of the best small cap AI stocks to invest in according to hedge funds. On September 17, Cerence announced the full integration of its industry-leading Audio AI suite into Audio Weaver, the powerful audio development platform created by DSP Concepts, which is a leader in embedded audio software. The collaboration is designed to revolutionize in-car audio by enabling customers, particularly automakers, to seamlessly deploy Cerence AI’s automotive audio solutions.

The integrated solutions are offered as ready-to-go modules within Audio Weaver, which is a platform already production-proven in millions of consumer and automotive products worldwide, supporting deployment across chipsets from major vendors like ARM, Cadence, Qualcomm, NXP, and STMicroelectronics.

The complete Cerence Audio AI suite is now available through Audio Weaver and includes three key technologies. The first is Speech Signal Enhancement/SSE, which consists of hands-free, advanced sound-processing technologies that remove background noise from microphone inputs. The second is Emergency Vehicle Detection/EVD, an in-car technology that alerts drivers about approaching emergency vehicles. The third component is In-Car Communication/ICC, which is a voice processing technology that enhances conversations between passengers by amplifying and clarifying speech.

Cerence Inc. (NASDAQ:CRNC) provides AI-powered virtual assistants for the mobility/transportation market in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific.