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Today's Featured Article 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 has been a market standout during that time. Compared with its IPO price of $37, Tempus shares were up by a whopping 155% on Monday, Oct. 13. The stock first eclipsed $100 on Oct. 8 and reached as high as $104 on Oct. 9, before pulling back to close near $94 on Oct. 13. Below, we'll examine the recent developments that have driven Tempus AI's share price and, more importantly, analyze what may lie ahead. Is the rally overdone, or do the fundamentals suggest further upside? Device Clearances and Trump's AI Cancer Order Send Tempus Flying A strange chasm is coming to Wall Street...
It's already creating millionaires and billionaires at the fastest pace in history. CNBC calls it "the largest wealth creation spree in history." Yet 1 in 3 Americans now fear their financial situation is deteriorating. There's only one way to survive, says the man who predicted 2008 and 2020, but sadly it's already too late for many. Everything you need to know is here. Much of the recent strength 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 numerical data about the condition of different heart tissues. Tempus says this can help detect issues that may not be obvious from a visual scan alone and it automates image reports, reducing the time clinicians spend on manual interpretation. Tempus shares jumped nearly 14% on the announcement. On Sept. 22, the company received 510(k) clearance for its Tempus xR IVD device, a test that analyzes cancer cells via RNA sequencing. Tempus believes the test can help biotech and pharmaceutical companies design better clinical trials by identifying patients more likely to respond to a treatment, potentially improving approval odds. The initial market reaction was positive, though the stock later eased. Finally, on Sept. 30, President Trump signed an executive order promoting federal programs and investment in using AI to fight pediatric cancer. The move aligns with Tempus's mission and raises the prospect of government-related business. Tempus later confirmed on Oct. 9 that it was working with a U.S. government agency to support cancer research; the initial market reaction was mixed. Consensus Projects +20% Downside in TEM; Recent Targets Provide Some Solace The MarketBeat-tracked consensus price target on Tempus sits just under $72, implying a potential decline of roughly 24% from recent levels. That suggests the stock could be vulnerable to a significant correction. However, several recent analyst target increases are more encouraging: HC Wainwright raised its price target from $90 to $98 on Sept. 12, and Guggenheim boosted its target from $80 to $95 on Sept. 26. Those updates imply between roughly 0% and 4% upside from current prices. While those revised targets don't promise large gains, they do offer some validation for the recent rally and suggest that, at least according to some analysts, the recent moves are not entirely unjustified given recent positive developments. Multiple Factors Point to Tempus Being Overbought Tempus trades at a forward enterprise value-to-sales (EV/S) ratio of about 12x, well above the roughly 6x average forward EV/S for U.S. large-cap life-sciences tools and services companies. That premium implies investors are pricing in substantial growth and adoption. President Trump's executive order is a clear positive for the sector, but the commercial impact of Tempus's newly cleared devices remains uncertain. Importantly, 510(k) clearance indicates a device is considered "substantially equivalent" to devices already on the market; it does not mean the device is necessarily superior or uniquely transformative. Tempus still needs to demonstrate meaningful clinical adoption and revenue contribution from these products. Given the company's high valuation and relatively modest Wall Street forecasts, the recent rally appears extended. Over the long term, Tempus could perform well—particularly considering its current revenues in the context of large pharmaceutical R&D budgets—but investors should be cautious at current prices and weigh the risk of a pullback against the potential for future growth.
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