Tempus AI Surges 1.62% on FDA Momentum: Is This the Start of a Breakout?

Summary
• Tempus AI (TEM) secures FDA clearance for xR IVD device to enhance drug discovery
• Intraday price hits 93.48, up 1.62% from previous close of 91.66
• Options chain shows heightened activity in October 10th 92/94 call spreads

Tempus AI’s stock is surging amid a flurry of FDA-related news, with its price climbing 1.62% to 93.15 in extended trading. The stock’s intraday range of 89.75 to 93.48 reflects growing investor confidence, fueled by recent regulatory approvals and a robust options market. As the healthcare AI sector braces for potential tariff headwinds, Tempus’s momentum suggests a pivotal moment for its market positioning.

FDA Clearances Fuel Tempus AI’s Bullish Momentum
Tempus AI’s 1.62% intraday gain is directly tied to its recent FDA clearances for the xR IVD device, which enhances drug discovery through RNA sequencing. Over the past month, the company secured multiple regulatory nods, including updates to its Pixel cardiac imaging platform and PurIST algorithm for pancreatic cancer. These approvals validate Tempus’s AI-driven diagnostics as a critical tool in precision oncology, driving institutional and retail investor demand. The stock’s surge aligns with a broader trend of healthcare AI firms capitalizing on regulatory validation to unlock growth narratives.

Healthcare Equipment Sector Navigates Tariff Uncertainty as Tempus AI Gains Ground
The Health Care Equipment and Supplies sector faces headwinds from the Trump administration’s Section 232 investigations into medical device imports, with potential tariffs looming as early as summer 2026. While Tempus AI’s stock climbs on product validation, sector leader Illumina (ILMN) trades down 1.18% as investors weigh regulatory risks. Tempus’s AI-centric model, which relies less on physical manufacturing, positions it to outperform peers in a high-tariff environment. However, broader sector volatility could temper momentum if trade policies shift abruptly.

Options and Technicals Signal Aggressive Bullish Setup for Tempus AI
• 200-day average: 59.67 (well below current price)
• RSI: 61.06 (neutral to overbought)
• MACD: 2.96 (bullish divergence from signal line 2.80)
• Bollinger Bands: Price at 93.15, near upper band of 92.96

Tempus AI’s technicals suggest a continuation of its bullish trend, with key resistance at the 92.96 upper Bollinger Band and support at the 84.09 middle band. The 30-day Kline pattern and rising RSI indicate strong near-term momentum. For leveraged exposure, the TEM20251010C92 and TEM20251010C94 call options stand out:

• TEM20251010C92
- Strike: 92, Expiration: 2025-10-10
- IV: 77.65% (high volatility)
- Delta: 0.5796 (moderate sensitivity)
- Theta: -0.7443 (rapid time decay)
- Gamma: 0.0461 (high sensitivity to price moves)
- Turnover: 458,460 (liquid)
- Leverage: 23.03% (aggressive payoff potential)
- Payoff at 5% upside (97.81): $4.81 per contract
- Why it stands out: High gamma and leverage make it ideal for a breakout above 92.96.

• TEM20251010C94
- Strike: 94, Expiration: 2025-10-10
- IV: 79.08% (elevated)
- Delta: 0.4866 (moderate)
- Theta: -0.6932 (strong time decay)
- Gamma: 0.0462 (high sensitivity)
- Turnover: 169,191 (liquid)
- Leverage: 29.89% (aggressive)
- Payoff at 5% upside (97.81): $3.81 per contract
- Why it stands out: Balances leverage and liquidity for a controlled bullish bet.

Aggressive bulls may consider TEM20251010C92 into a bounce above $92.96, while conservative traders can use TEM20251010C94 for a lower-risk entry if the 93.15 level holds.

Backtest Tempus AI Stock Performance
Below is an interactive report of the 2 % intraday-surge strategy on Tempus AI (TEM), covering 2022-01-03 to 2025-10-06. Explore the module for full metrics, trade log and risk profile.Key take-away: the strategy delivered robust compounded growth but experienced substantial drawdowns—confirming both its aggressiveness and sensitivity to volatility. Let me know if you’d like deeper diagnostics or parameter refinements.

Tempus AI’s FDA-Driven Rally: Position for a Breakout or Pullback?
Tempus AI’s 1.62% surge underscores its potential as a regulatory-driven growth story, with FDA clearances acting as a catalyst. The stock’s technicals and options activity suggest a high-probability continuation of its bullish trend, particularly if it breaks above the 92.96 upper Bollinger Band. However, sector-wide tariff risks—exemplified by Illumina’s 1.18% decline—highlight the need for caution. Investors should monitor the 84.09 middle Bollinger Band as a critical support level and watch for a potential pullback before committing to long positions. For now, the 92.96–93.48 range offers a clear target for aggressive bulls, with the October 10th options chain providing leveraged tools to capitalize on the move.