Tempus AI (TEM) Soars 6.8% on FDA Breakthrough—Can Bulls Keep the Momentum?

• Tempus AI (TEM) surges 6.8% to $59.68, hitting a session high of $59.77—its highest since early 2024.
• FDA grants clearance for its AI-driven Tempus ECG-Low EF software, a tool to identify low ejection fraction risks in cardiovascular patients.
• Trading volume spikes to 11.86 million shares, with options turnover surging on leveraged ETF TEMT (Tradr 2X Long TEM Daily) up 12.97%.

The stock’s 6.8% surge marks a sharp rebound from its 52-week low of $31.36, fueled by FDA validation of its AI diagnostics platform. Bulls are betting on long-term growth in AI-powered precision medicine, but near-term resistance looms at $68.13 as technicals show mixed signals.

FDA Clearance Ignites AI Healthcare Breakthrough Momentum
The surge is directly tied to Tempus AI’s FDA clearance for its Tempus ECG-Low EF software, an AI tool analyzing ECG data to identify patients at risk of low left ventricular ejection fraction (LVEF ≤40%). This non-invasive diagnostic solution targets a critical gap in cardiovascular care, complementing its existing Tempus ECG-AF offering. The FDA nod validates Tempus’ AI-driven precision medicine strategy, positioning it as a leader in integrating AI into clinical workflows. Analysts highlight the tool’s scalability and potential to expand Tempus’ revenue streams beyond traditional diagnostics.

Health Care Equipment Sector Mixed as Tempus Outshines Peers
While Tempus soars on its FDA win, the broader Health Care Equipment sector remains muted. Medtronic (MDT), a sector bellwether, gains just 0.6%, reflecting its reliance on incremental device upgrades rather than disruptive AI innovations. Sector newsflow focuses on niche tech like needle-free drug delivery systems and regulatory hurdles (e.g., Fresenius Kabi’s pump recalls). Tempus’ AI-first narrative stands apart, suggesting it’s carving out a niche where traditional medtech players are slower to adopt AI at scale.

Bulls Target $68.13—Layer in Calls with TEM20250725C59 and TEM20250725C60
• Technical Indicators:
• Bollinger Bands: Upper $73.39 (current price near upper band), Middle $63.10, Lower $52.81.
• RSI: 27.03 (oversold, suggesting a near-term bounce).
• MACD: -1.786 vs. Signal Line -0.762 (bearish crossover warns of potential pullback).
• Key Resistance: $68.13 (30-day), Support: $58.33 (200-day).

Bulls aim to push TEM beyond $68.13, but MACD divergence signals caution. Aggressive traders can pair long positions with these top options:

TEM20250725C59 (Call, Strike $59):
- Delta: 0.584 | Gamma: 0.056 | Theta: -0.278 | IV: 69.98% | Leverage: 18.12% | Turnover: $90k.
- Why it shines: In-the-money delta (0.58) offers immediate price sensitivity. A 5% rally to $62.65 yields a $3.65 payoff, amplified by gamma.

TEM20250725C60 (Call, Strike $60):
- Delta: 0.527 | Gamma: 0.055 | Theta: -0.273 | IV: 72.48% | Leverage: 20.69% | Turnover: $498k.
- Why it shines: High liquidity and a delta near 0.52 make this a sweet spot for sustained momentum. A $62.65 close nets a $2.65 profit, with gamma boosting gains in volatility.

Hook: “Bulls targeting $68? Layer in TEM20250725C60 calls for asymmetric upside.”

Backtest Tempus AI Stock Performance
The performance of Tempus AI (TEM) after a 7% intraday surge can be evaluated by analyzing the impact of this surge on the stock's trajectory and the broader implications for investors. Here's a detailed analysis:1. Intraday Surge Analysis: A 7% intraday surge indicates a significant positive movement in TEM's stock price within a single trading day. This can be indicative of strong investor confidence or positive market reactions to recent news or earnings reports related to the company.2. Post-Surge Performance: To assess the long-term impact of the surge, it's important to consider the broader market context and any subsequent trading days. A single-day surge can be volatile and may not translate into sustained long-term growth unless supported by fundamental improvements in the company's financials or strategic developments.3. Investor Sentiment: The surge may reflect changes in investor sentiment, such as renewed optimism about TEM's future prospects. However, it's crucial to monitor the sustainability of these sentiments and the company's ability to deliver on the expectations raised by the surge.4. Technical Analysis: From a technical analysis perspective, the 7% surge could be a breakout from previous price levels, indicating a potential shift in the stock's momentum. This could be a signal for traders looking to enter or exit positions based on short-term movements.5. Legal and Regulatory Factors: It's also important to consider any legal or regulatory factors that may impact TEM's performance. Recent news articles have highlighted class action lawsuits and concerns over financial reporting, which could lead to further volatility if unresolved.In conclusion, while a 7% intraday surge is a positive indicator, it's important to analyze the context and subsequent developments to fully assess its impact on TEM's performance. Investors should monitor the stock's trajectory closely, considering both technical analysis and fundamental factors, as well as any legal or regulatory developments that may influence the stock's future movements.

AI-Driven Cardiac Care is Here—Hold the Line for Tempus’ Next Move
Tempus AI’s FDA win isn’t just a catalyst—it’s validation of AI’s transformative role in diagnostics. Bulls face near-term resistance at $68.13, but the broader narrative of AI in healthcare remains intact. Investors should monitor whether TEM can sustain momentum above $58.33 (200-day support) while watching for sector-wide adoption of AI tools. Meanwhile, Medtronic’s stagnant 0.6% gain underscores the gap between legacy medtech and Tempus’ disruptive playbook. The trade remains bullish: stay long with calls above $59, but brace for volatility as traders assess long-term impact. Action Alert: Watch for a breakdown below $58.33 or a regulatory milestone in Q3 2025.