Cerence (CRNC) is soaring over 100%, while Oklo (OKLO)  is advancing 18%.

Cerence "provides AI powered virtual assistants for the mobility/transportation market," and Oklo is looking to build small modular nuclear reactors.

 Cerence Expands Its Deal With Nvidia

The company disclosed that it had agreed to widen its existing deal with Nvidia (NVDA). The tech firm reported that " its cloud-based Cerence Automotive Large Language Model (CaLLM)" was being "powered" by Nvidia's AI Enterprise. Cerence described the latter system as  "an end-to-end, cloud-native software platform," and it credited Nvidia's platform with enabling it to develop CaLLM more quickly.

12 Trending AI Stocks on Latest News and Ratings

Additionally, Cerence noted that portions of its "embedded small language model," known as CaLLM EDGE, would be "powered" by Nvidia's Drive AGX Orin. According to Nvidia, the latter offering is a system-on-a-chip that acts as the main computer for vehicles. Among the services that it enables are autonomous driving and AI cockpits, the chip maker noted.

 Oklo Rises on Favorable Move by the Biden Administration

Earlier today, the Biden administration issued new rules regarding eligibility for tax credits that companies can receive for producing clean hydrogen. Under the new criteria, 200 megawatts of reactors' power can receive tax credits if they are used to produce hydrogen and if the reactors are in danger of being closed due to economic issues.

OpenAI CEO Sam Altman is the chairman of Oklo and owned a 2.6% stake in the firm, according to a regulatory filing issued in June.

While we acknowledge the potential of CRNC, 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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ ALSO  8 Best Wide Moat Stocks to Buy Now  and  30 Most Important AI Stocks According to BlackRock Disclosure: None. This article is originally published at Insider Monkey.