Veteran analyst unveils bold price target for Tempus AI stock

Here’s what could be next for the popular AI stock.

Jun 12, 2025 - 18:02

Veteran analyst unveils bold price target for Tempus AI stock

While much of Wall Street is focused on AI chipmakers and cloud giants, one AI health care stock is quietly making big moves.

Tempus AI (TEM) , founded in 2015, uses artificial intelligence to help physicians make personalized, data-driven decisions. The stock, which went public in June 2024, has surged 12% over the past five days and 109% this year, even after a sharp drop in late May triggered by a short-seller report questioning its business model.

The stock plunged more than 19% on May 28 after short-seller Spruce Point Capital Management released a report raising concerns about management’s alleged history of promoting disruptive technology companies with revenue recognition issues and shareholder losses.

The report also questioned the validity of Tempus AI’s artificial intelligence services, citing minimal revenues and product demonstrations.

Tempus AI responded that the report was "riddled with hypotheticals and inaccuracies and fails to address Tempus’ history of strong financial performance and impressive growth."

In its most recent earnings report released on May 6, the company posted 75.4% revenue growth year-over-year and raised its full-year forecast to $1.25 billion, reflecting roughly 80% growth from the previous year.

However, the company is still not profitable, and net loss for the quarter widened to $68 million from $64.7 million.

Tempus AI stock is up 109% this year.
Image source: Cheng Xin/Getty Images

Cathie Wood doubles down on AI healthcare

Ark Invest founder and CEO Cathie Wood is one of Tempus AI’s most high-profile backers. She has been actively buying Tempus AI’s stock since last June's IPO.

Most recently, her funds purchased 251,080 shares of Tempus AI on May 28, a stake valued at roughly $17.8 million now.

As of June 11, Tempus AI is the sixth-largest holding in the flagship Ark Innovation ETF (ARKK) , making up 5.8% of the fund’s portfolio with a market value of $364.6 million.

“We’ve got 37 trillion cells in our body, and they’re going to be sequenced as we’re looking for cures,” Wood said in a February CNBC interview. “I think the most underappreciated application of AI is health care. I think health care is responsible for an incredible amount of storage out there right now. Data is the name of the game.”

In response to the earlier short report, Ark’s team said it investigated the allegations and remains confident in the company’s mission and technology.

Tempus has also caught the attention of former House Speaker Nancy Pelosi, who earlier this year bought 50 call options on the stock (a bet that it would rise) valued at least $50,000.

One veteran analyst sees breakout potential to $90

Barchetta Capital Management Managing Director Ed Ponsi is also bullish on Tempus AI. In a memo published at TheStreet Pro, Ponsi highlighted both the company’s market potential and technical setup.

“This AI stock could be at the forefront of a medical revolution,” Ponsi wrote. “AI will disrupt the medical industry via its ability to analyze vast amounts of information in seconds. It will speed the development of new drugs and therapies, streamline the drug manufacturing process and interact with patients.”

Ponsi pointed to a series of rounded bottoms on the stock’s chart (a bullish pattern) and identified $70 as a key resistance level. That threshold has now been cleared as Tempus AI closed at $70.78 on June 11.

More Tech Stocks:

"Because Tempus AI fell quickly and sharply from that high in February, no subsequent support or resistance levels were created between the current price and the all-time high. This means a move to the $90 area or higher could happen quickly," Ponsi noted.

Ponsi's price target for Tempus AI stock is $90.