Tempus AI’s Volatile $6.78 Intraday Swing and 88th-Ranked $970M Volume Amid Regulatory Pressures

Tempus AI (TEM) closed at $67.20 on August 20, 2025, with a 0.27% gain as trading volume reached $970 million, ranking 88th among equities. The stock experienced a volatile intraday range from $67.02 to $73.80, reflecting significant price swings despite its modest closing rise.

The healthcare AI sector faced broader regulatory headwinds as policymakers signaled potential Medicaid overhauls that could disrupt provider networks. These developments intensified market concerns over cost-cutting measures that might curtail tech investments in health systems. Tempus AI's niche position in AI-driven healthcare solutions exposed it to sharper volatility compared to sector peers, with UnitedHealth Group (UNH) retreating 2.12% amid similar uncertainties.

Options activity highlighted bearish positioning, with put options expiring on August 29 showing heightened demand. The TEM20250829P66 put option, with a $66 strike price, saw robust liquidity and gamma sensitivity, suggesting traders were hedging against a potential breakdown below $63.50. Technical indicators revealed a 200-day moving average at $55.50 and key support levels at $60.54 and $58.33, though the stock remains below its 52-week low of $31.36.

Historical backtesting of Tempus AI's performance showed a 65.81% win rate over 30 days following intraday plunges of -8% or more. The strategy demonstrated recovery potential after such declines, with 49.63% of cases showing positive returns within three days. These patterns suggest the stock may exhibit resilience in short-to-medium term trading despite current regulatory pressures.