Tempus AI Inc (NASDAQ:TEM) has become one of 2025's most dramatic comeback stories. The stock soared past $100 this week, marking a new 52-week high and sending the market buzzing about the AI-powered cancer diagnostics company's growth prospects. Investors are taking note as the stock climbs amid recent FDA clearances and a government push for AI solutions in pediatric cancer.
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FDA Wins Fuel Momentum
The latest catalyst came after Tempus secured FDA clearance for its Tempus xR IVD device in late September, a breakthrough RNA sequencing tool designed to tailor therapies for cancer patients. The company's expanding portfolio of AI-powered diagnostic tools has positioned it as a leader in the AI healthcare sector.
Adding to the momentum, a recent executive order from President Donald Trump promoting AI-based solutions for pediatric cancer sent fresh optimism through the healthcare AI space.
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Billionaire Investor Bets Pay Off
Billionaire Cliff Asness of AQR Capital Management made a timely entrance into Tempus AI earlier this year, disclosing a new $54 million stake of roughly 850,000 shares at an average price of $55.89 in the second quarter of 2025. With shares now trading near $102, that stake is already up more than 60%. Asness' position in Tempus AI has already gained over $39 million, highlighting the impact of AI-focused innovation on Wall Street portfolios.
Why It Matters
Tempus AI's stock momentum underscores a broader theme: investors are betting on companies that combine AI innovation with tangible clinical applications.
FDA clearances, government backing, and successful billionaire-backed trades are fueling excitement, making TEM a stock to watch for those looking to capitalize on AI-driven healthcare growth.
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