Tempus AI Surges 6.33% on $1.1B Volume Ranks 61st in Market Activity as AI Healthcare Deals Fuel 100% YTD Gains

On August 18, 2025, Tempus AI (TEM) surged 6.33% to $74, with a trading volume of $1.11 billion, ranking 61st in market activity. The stock has gained over 100% year-to-date, driven by strong revenue growth and strategic advancements in AI-driven healthcare.

Tempus has secured key partnerships, including a $200 million collaboration with AstraZeneca to develop an oncology-focused AI model and expanded ties with Takeda and Northwestern Medicine. These agreements reinforce its position in precision medicine and drug discovery, with institutional adoption accelerating as healthcare systems digitize. Government contracts also contributed, with $5.79 million in payments for genomic testing services.

Analysts remain optimistic, with four firms issuing "Buy" ratings and a median price target of $70. However, insider selling has raised concerns, as executives sold over $54 million in shares in the past six months. Despite this, the company reported a 89% year-over-year revenue increase in Q2, exceeding expectations and revising full-year guidance upward.

Valuation remains elevated at 14x trailing revenue, but projected growth to $2.5 billion by 2028 supports potential upside. Risks include competitive pressures from tech giants and regulatory uncertainties in healthcare data usage. The stock’s high short interest (25.65%) reflects mixed investor sentiment, though recent declines in short selling suggest improving confidence.

A backtest of a strategy buying the top 500 stocks by daily volume and holding for one day yielded a 23.4% cumulative return from 2022 to the present. This indicates modest profitability in volatile markets, though Tempus’s performance highlights the impact of sector-specific momentum and strategic partnerships.