Good morning,
I wanted to send you a quick email because I was looking over your account and noticed you are not currently receiving MarketBeat's Monday morning stock ideas.
We send out a new stock idea every Monday morning around 11:00 AM Eastern. They are completely free to receive as part of your MarketBeat subscription, and we send them out via SMS so that you can review them as soon as they come out.
While we don't tout the performance of our Monday stock ideas, last week's idea was quite popular with our subscribers.
Add your name to the distribution list here.
To your success,
William Bushee
Vice President, MarketBeat
Tempus AI Hits $100—Are Shares Due for a Pullback?
Written by Leo Miller. Published 10/15/2025.
Key Points
- Tempus AI has been one of the most talked about names to IPO in the past few years.
- The stock briefly soared above $100 and is still up more than 150% from its initial price.
- What's driving the stock's recent gains, and should investors worry about a larger correction in this name?
Tempus AI (NASDAQ: TEM) has been publicly traded for only 16 months, and it has been a standout in the market over that time. Compared with its IPO price of $37, Tempus shares were up about 155% as of Monday, Oct. 13. The stock topped $100 for the first time on Oct. 8 and reached as high as $104 on Oct. 9, before retreating to close near $94 on Oct. 13.
Below we'll review the developments driving Tempus AI's recent gains and consider what the outlook may mean for investors. Is this rally overstretched, or do the fundamentals support further upside?
Device Clearances and Trump's AI Cancer Order Send Tempus Flying
BlackRock and Vanguard may have just handed you a trading gift (Ad)
BlackRock and Vanguard may have just handed everyday traders a rare gift — a market glitch that lets you target "weekly dividends" of $175… $300… even $1,000 from one blue-chip stock without owning a single share.
Click here to see how the "weekly dividend" setup worksMuch of the recent move in this healthcare stock stems from several key events. On Sept. 11, Tempus announced it had received 510(k) clearance from the Food and Drug Administration (FDA) for its updated Tempus Pixel medical device. Pixel is an AI-powered cardiac imaging platform that provides quantitative data on the condition of different heart tissues. Tempus says those measurements can help detect abnormalities that may be difficult to spot visually on scans and that Pixel can generate automated image reports, reducing the time clinicians spend on manual interpretation. Tempus shares jumped nearly 14% on the clearance news.
The company also won 510(k) clearance for its Tempus xR IVD on Sept. 22. That test uses RNA sequencing to analyze tumors, and Tempus aims to offer it to companies designing oncology trials. RNA profiling can reveal how a patient's cancer is behaving and may help drug developers identify patients most likely to benefit from a given therapy, potentially improving trial design and boosting the odds of regulatory approval. Tempus shares initially spiked on the announcement but closed lower that day.
Finally, on Sept. 30, President Trump signed an executive order encouraging federal agencies to expand programs and investment in using AI to combat pediatric cancer. The policy announcement aligns with Tempus's mission and helped shares rise about 9% that day. Tempus later said on Oct. 9 that it was working with a U.S. government agency to support cancer research; shares closed lower on that follow-up news.
Consensus Projects +20% Downside in TEM; Recent Targets Provide Some Solace
The MarketBeat-tracked consensus price target for Tempus is just under $72, implying a substantial downside from recent levels (about a 24% drop). That said, several recently updated analyst targets are more encouraging. HC Wainwright raised its forecast from $90 to $98 on Sept. 12, and Guggenheim increased its target from $80 to $95 on Sept. 26. Those revisions imply roughly 0%–4% upside from current prices.
Those figures are modest, but they do help justify some of the stock's recent gains and suggest that at least a portion of the rally reflects improving analyst sentiment after the regulatory clearances.
Multiple Factors Point to Tempus Being Overbought
Valuation remains a concern. Tempus trades at a forward enterprise value-to-sales (EV/S) ratio of about 12x, well above the roughly 6x forward EV/S average for U.S. large-cap life sciences tools and services names.
While the executive order and device clearances are positives, their ultimate financial impact is uncertain. A 510(k) clearance indicates a device is "substantially equivalent" to an existing product; it does not necessarily mean the device is superior or uniquely positioned. Tempus still must demonstrate that its cleared products will gain adoption and contribute meaningfully to revenue.
Taken together — the lofty EV/S multiple, tepid consensus price targets, and the uncertainty around commercial adoption — the evidence suggests the recent rally may be overstretched. Over the longer term, Tempus could perform well given the relatively small size of its revenues compared with overall pharma R&D spending and the market opportunity for AI-enabled diagnostics. For now, though, investors should approach the stock with caution at current price levels.
This message is a sponsored message for MarketBeat Alerts, a third-party advertiser of InsiderTrades.com and MarketBeat.
If you have questions or concerns about your account, please don't hesitate to contact MarketBeat's South Dakota based support team at contact@marketbeat.com.
If you no longer wish to receive email from InsiderTrades.com, you can unsubscribe.
© 2006-2025 MarketBeat Media, LLC.
345 North Reid Place, Sixth Floor, Sioux Falls, S.D. 57103-7078. United States..