Automotive voice technology leader Cerence (CRNC) has partnered with subscription audio entertainment firm Sirius XM (SIRI) to provide car radio voice controls for the service. CRNC stock rose on the news.
Under the deal, announced Thursday, drivers will be able to use simple and intuitive voice commands to access programming in vehicles equipped with Sirius XM radios. For instance, they can say, “Play ’80s on 8” to tune into that music channel. Sirius XM offers hundreds of channels of curated, ad-free music, plus sports, news, entertainment and comedy.
The new functionality will be provided to cars with existing Cerence-powered automotive assistants that have over-the-air update capabilities. And an integrated offering from Cerence and Sirius XM will be available in North America to automakers for models starting production in the next year.
On the stock market today, CRNC stock climbed 0.7% to 116.13. But Sirius XM stock fell 2.3% to 6.69.
Adding Voice Commands To Sirius XM
“Sirius XM has broad reach as the leading in-car content provider, bringing new and exciting programming to their subscribers,” Cerence Chief Executive Sanjay Dhawan said in a news release. “As we extend the capabilities of the mobility assistant with more streamlined access to Sirius XM content, we enable a rich, dynamic experience for drivers that makes their journey safer, more productive, and more enjoyable.”
For drivers using Sirius XM for the first time, Cerence will deliver a voice-powered, conversational onboarding experience. It will inform them of key features, functions and information about Sirius XM and their trial or subscription.
For existing Sirius XM users, the Cerence-powered automotive assistant will use artificial intelligence to continuously learn about their preferences. Drivers who consistently tune in to Sirius XM’s ’80s on 8, for example, will be directed to new content they might enjoy.
CRNC Stock On IBD’s Flagship Watchlist
CRNC stock is on the IBD 50 list of top-performing growth stocks.
Last week, Baird analyst Luke Junk initiated coverage of Cerence with an outperform rating. He set a price target on CRNC stock of 122.
“We see CRNC as an attractive growth holding, rooted in the company’s industry-leading AI voice platform for mobility/transportation,” Junk said in a note to clients.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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