Jim Cramer on Cerence: “I Think the Current Version Has Got More Upside”

Cerence Inc. (NASDAQ:CRNC) is one of the stocks on Jim Cramer’s radar. Cramer mentioned the stock during the episode and had some positive things to say about the company’s CEO, Brian Krzanich. He stated:

“When research director, Ben Stoto, and I played around with the company’s website, wow, Cerence could respond, interact, and unlike Alexa, handle interruptions with a plum… Now here’s what really matters: Cerence is just a $472 million company… Brian’s a big-time CEO at a small-time company. He ran Intel, and then after that, ran CDK Global. He then sold CDK to Brookfield, a private equity firm, for 30% premium versus where the stock was trading before they made the bid.

I know Brian’s cleaning up Cerence AI like he cleaned up CDK. He has no desire to sell. He wants to build, and I think he will because his voice technology’s superior to anything I’ve seen. To me, this is the kind of situation where you could win either way. The market’s red hot. You don’t want to buy something that’s already had a great deal of a run, but at one point, Cerence, the stock, traded at more than 10 times what it sells for right now. And while it had much better profitability back then, I think the current version has got more upside.”

Jim Cramer on Cerence: "I Think the Current Version Has Got More Upside"

Stock market data showing an upward trajectory. Photo by Burak The Weekender on Pexels

Cerence Inc. (NASDAQ:CRNC) develops AI-powered virtual assistant solutions for the transportation industry. The company also provides edge and cloud-based software, integration, and professional services.

While we acknowledge the risk and potential of CRNC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRNC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.