Cerence Inc. (CRNC) stock surged 5.27% in pre-market trading on Tuesday, outperforming the broader market. The rally was driven by increased optimism among investors, as evidenced by bullish options activity and the company's ties to graphics chip giant Nvidia.
According to market observers, the call volume for CRNC options was significantly higher than expected, and implied volatility spiked nearly 4 points. This surge in call options trading suggests heightened investor confidence in the company's prospects.
Furthermore, Cerence's technology integrates with Nvidia's AI platforms, benefiting from the chipmaker's strength. As Nvidia-linked stocks soared in overnight trading, CRNC capitalized on this positive sentiment, adding to the upward momentum.
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