This Week In AI Chips - Accelerating In-Car AI: Cerence Partners With Arm

Cerence AI has entered into a strategic partnership with Arm to enhance the capabilities and performance of its CaLLM Edge, an embedded small language model, by utilizing Arm's Kleidi software library. With the automotive industry increasingly focusing on AI-powered features, the partnership aims to address the challenges of optimizing compute performance for intensive workloads like large language models. This collaboration promises to improve speed, performance, and privacy in processing language models at the edge by efficiently managing AI computation between CPUs and GPUs. As a result, automakers can provide a fast and intelligent in-car user experience, even when disconnected from the cloud.

• Arm Holdings (NasdaqGS:ARM) last closed at $128.10 down 5.5%.

Elsewhere in the market, Waaree Energies (NSEI:WAAREEENER) was a standout up 7.9% and finishing the session at ₹3,017.10. Meanwhile, Arm Holdings (NasdaqGS:ARM) softened, down 5.5% to close at $128.10. Two days ago, Arm formed a strategic partnership with Cerence AI to enhance in-car AI capabilities through its Kleidi software.

Demand-driven growth in Arm's technologies, particularly in AI integration, offers transformative opportunities. Discover the compelling narrative behind this potential by clicking here.

On a related note, don't miss our Market Insights article "A.I. Enters the 'Show Me The Money' Phase," which highlights the maturing trends and key investment opportunities in AI chip companies, providing critical updates that could impact your investment strategy.

Best AI Chip Stocks

• NVIDIA (NasdaqGS:NVDA) finished trading at $139.19 up 3.2%. On Wednesday, NVIDIA reported significant first-quarter earnings growth with sales reaching $44.062 billion and provided guidance for second-quarter revenue, which is expected to be $45.0 billion, influenced by export control limitations.
• QUALCOMM (NasdaqGS:QCOM) ended the day at $148.34 up 0.5%.
• Advanced Micro Devices (NasdaqGS:AMD) closed at $113.03 up 0.2%.

Next Steps

• Investigate our full lineup of 53 AI Chip Stocks featuring Taiwan Semiconductor Manufacturing, Novatek Microelectronics and MediaTek right here.
• Searching for a Fresh Perspective? Outshine the giants: these 26 early-stage AI stocks could fund your retirement.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Sources:

• Simply Wall St
• "Cerence AI Partners with Arm to Deliver Enhanced LLM Capabilities at the Edge" from Cerence Operating Company on GlobeNewswire (published 28 May 2025)

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