Tempus AI, Inc. (TEM) Down 4.6% — Do I Close the Door on This Trade?
Key Points
Tempus AI, Inc. (TEM) spent the latest session under pressure, retreating 4.58% and losing $3.39 to close at $70.47 versus the prior close of $73.86. The stock continues to slide further away from its 52-week peak of $104.32 set on Oct. 9, 2025, now trading roughly one-third below that recent high. This retreat underscores how sharply the shares have pulled back from their earlier levels, with the current quote sitting much closer to the lower half of the 52-week range between $31.36 and $104.32. The move keeps the stock on the defensive, with recent action reflecting a market that has been more inclined to sell into strength than to bid shares higher.
Trading activity also highlighted waning enthusiasm, with volume of 1.6 million shares well below the 90-day average of just over 8.0 million. That lighter participation suggests fewer buyers stepping in as the stock loses ground, reinforcing the sense that momentum is sliding rather than stabilizing. Within the broader biotech and life sciences peer group on the NASDAQ, names such as Alnylam Pharmaceuticals (ALNY), Insmed (INSM), BeOne Medicines (ONC), Natera (NTRA), and BioNTech (BNTX) have also seen stretches of volatility, but Tempus AI’s fall from its 52-week high leaves it particularly exposed. Overall, the recent price action points to a stock facing meaningful headwinds, with sellers maintaining the upper hand for now.
Why Tempus AI, Inc. Price is Moving Lower
Tempus AI, Inc. is coming under pressure as investors reassess a stock that has nearly doubled year to date but is now slipping from its early-December highs. The pullback from $77.98 on Dec. 8 to $73.86 on Dec. 11, with trading remaining subdued and largely flat intraday on Dec. 12, points to waning enthusiasm after a strong run. With no fresh company-specific catalysts this week — despite earlier upside drivers like FDA approvals for AI diagnostics and a $300 million financing tied to the Ambry Genetics acquisition — recent weakness looks more like profit-taking and positioning rather than renewed optimism. The wide spread in current analyst price targets, ranging from $60 to $110, also reflects increasing debate over how much upside remains after such a strong 2025 rally.
Fundamentally, investors are confronting the tension between rapid top-line expansion and ongoing losses, which is creating a headwind at current price levels. Revenue grew 6.2% quarter over quarter to $334.21 million and 84.72% over the past year, but the company is still operating with a negative profit margin of -18.44%. That combination of aggressive growth and persistent red ink can invite valuation concerns, particularly in a higher-for-longer rate environment where unprofitable growth stories are scrutinized more heavily. Within the broader health care and biotech space, peers such as Alnylam Pharmaceuticals, Insmed, BeOne Medicines, Natera, and BioNTech are also navigating sentiment swings, adding to sector-level caution. Together, these factors are pressuring Tempus AI’s shares as investors lock in gains and demand clearer visibility on the path to sustainable profitability.
What is the Tempus AI, Inc. Rating - Should I Sell?
Weiss Ratings assigns TEM a D rating. The stock was downgraded on 9/10/2024, and the current recommendation is Sell. A D rating signals an unfavorable risk/reward profile, even within a volatile Health Care space, and indicates that, overall, shareholders have not been adequately compensated for the risks involved.
At first glance, some underlying metrics look appealing. TEM shows very strong revenue growth of 84.72%, and the company earns an Excellent Solvency Index, suggesting a balance sheet that currently supports its obligations. However, these positives have not translated into shareholder-friendly outcomes. The Very Weak Efficiency Index points to poor use of capital, with operations failing to convert growth into sustainable profitability. That concern is reinforced by a negative profit margin of -18.44% and an extremely depressed forward P/E of -58.56, which together highlight ongoing losses and a valuation that still prices in considerable optimism.
The Fair Total Return Index and Weak Volatility Index further explain the D rating. Historical performance has been mediocre relative to risk, and price swings have not rewarded investors sufficiently for enduring that volatility. In other words, strong top-line expansion has not protected shareholders from drawdowns or justified the risks being taken.
Within its Health Care peer group, Tempus AI, Inc. is clustered with other weakly rated names such as Alnylam Pharmaceuticals, Inc. (ALNY, D-), Insmed Incorporated (INSM, D-), and Natera, Inc. (NTRA, D-). This grouping underscores that TEM trades in a higher-risk segment of the market where many stocks fail to deliver consistent, risk-adjusted returns.
About Tempus AI, Inc.
Tempus AI, Inc. is a health care technology company positioned at the intersection of pharmaceuticals, biotechnology and life sciences. The company focuses on applying artificial intelligence and data analytics to clinical and molecular data with the stated goal of enabling more precise and personalized care. Its core platform aggregates and structures large volumes of patient data, including genomic, clinical and imaging information, to support decision-making in oncology and other therapeutic areas. Tempus markets its solutions primarily to health systems, research institutions, and biopharmaceutical companies that require advanced tools for clinical decision support and clinical trial design.
The company’s offerings include AI-enabled clinical decision support tools for oncologists, molecular profiling tests, and data-driven services for drug discovery and development. Tempus also positions itself as a partner for pharmaceutical and biotechnology firms, providing real-world data, trial matching capabilities, and analytical services intended to optimize clinical development programs. Despite the breadth of its platform, Tempus operates in a crowded and highly competitive segment of the health care and life sciences industry, facing pressure from established diagnostics firms, large technology companies entering health care data, and other specialized AI and genomics players. Its business model is heavily dependent on continuous data acquisition, algorithm development, and integration into complex clinical workflows, all of which present ongoing execution and adoption challenges.
Investor Outlook
With Tempus AI, Inc. (TEM) carrying a D (Sell) Weiss Rating, investors may want to exercise caution and closely monitor whether recent trading stabilizes or breaks below nearby support levels, which could signal further downside risk. Watch for shifts in Health Care sector sentiment and any improvement in the company’s underlying fundamentals that could eventually justify a rating upgrade. See full rankings of all D-rated Health Care stocks inside the Weiss Stock Screener.
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