Innovation Fuels Rally for Tempus AI: Should You Buy the Stock Today?

From Nasdaq: 2025-06-09 15:00:00

Tempus AI’s stock (TEM) surged 12.5% in June on the back of two key innovations: the launch of the xM liquid biopsy assay for cancer patients and the EHR integration of Tempus One. A $200 million partnership with AstraZeneca and Pathos and the acquisition of Deep 6 AI further bolstered the company’s growth prospects.

The xM liquid biopsy assay uses whole-genome sequencing to monitor immune checkpoint inhibitor responses in cancer patients. Tempus One, integrated into major EHR systems, provides real-time patient-specific insights. The $200 million partnership with AstraZeneca and Pathos aims to develop a foundation model for oncology using Tempus AI’s data.

Despite an 83.8% YTD stock surge, Tempus AI reported an adjusted EBITDA loss in Q1 2025. The stock is currently trading above its moving averages, indicating upward momentum. However, it remains overvalued compared to industry peers like iRhythm Technologies and SOPHiA GENETICS.

Tempus AI offers strong long-term potential but faces competition and is yet to achieve profitability. Investors are advised to hold current positions, while new investors should wait for a better entry point. The stock is currently rated a Zacks Rank #3 (Hold) due to its premium valuation and competitive landscape.



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