Why Tempus AI Stock Soared Nearly 14% Higher Today

Key Points

• The company was given a green light by an important regulator.

• Its updated heart imaging platform received clearance for commercialization.

• 10 stocks we like better than Tempus AI ›

The stock of healthcare-focused artificial intelligence company Tempus AI (NASDAQ: TEM) was the cure for aching portfolios on Thursday. The company's share price ballooned by almost 14% on the back of a top regulator's decision about one of its products. That price pop was much more muscular than the S&P 500 index's 0.9% rise on the day.

A heartening development

Before market open, Tempus AI announced that the U.S. Food and Drug Administration (FDA) had granted clearance for an upgraded version of its Tempus Pixel. This is a cardiac imaging platform that harnesses the company's AI technology to produce highly accurate images of a patient's heart.

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Image source: Getty Images.

The healthcare tech company believes this will be beneficial not only to its own results but also for medical science in general.

In the press release touting the news, Tempus AI quoted its senior vice president of AI applications, Chris Scotto Divetta, as saying that "This marks another important regulatory milestone for Tempus and underscores our commitment to advancing AI-driven imaging technology that is both scientifically rigorous and clinically meaningful."

Cardiac health is a significant segment of the broader healthcare market, so useful and effective next-generation imaging solutions are always welcome. This Tempus Pixel should be a winning product.

Growing product portfolio

What's also encouraging about Tempus AI is that it's not concentrating only on this segment or on imaging. Through both proprietary efforts and with strategic acquisitions, the company also offers AI-boosted analytical tools for evaluating diagnostics like CT scans and X-rays. The healthcare sector can really benefit from the effective deployment of AI, and this company seems as if it's on top of the game just now.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.