Why Tempus Ai Stock Is Skyrocketing Today

Tempus Ai (NASDAQ: TEM) stock is seeing an explosive valuation surge in Tuesday's trading thanks to a pair of catalysts. The healthcare software company's share price was up 35.8% as of 3:15 p.m. ET, and had been up as much as 41.8% earlier in the day.

In a recently published disclosure filing, Congresswoman Nancy Pelosi showed that she had purchased call options for Tempus Ai stock. The healthcare artificial intelligence (AI) company's share price is also getting a boost from a press release announcing the company's new software platform.

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Tempus Ai stock surges on latest Pelosi disclosure

As a member of Congress, Nancy Pelosi is required to submit filings that disclose her and her husband's stock sales and purchases. Along those lines, the former House speaker's most recent disclosure showed that she had purchased 50 call options for Tempus Ai stock. These options had a strike price of $20 per share, and the overall trade had a value between $50,000 and $100,000.

Pelosi makes frequent stock market moves and has generally recorded very strong performance with her trades. According to an analysis conducted by UnusualWhales, Pelosi recorded gains of 70.9% on her stock trades in 2024 -- far exceeding the roughly 25% gain for the S&P 500 (SNPINDEX: ^GSPC) across the stretch. In response to market-beating performance for her trades, some investors have been paying close attention to Pelosi's market moves and replicating her purchases and sales.

Tempus Ai debuts new software service

In addition to gains powered by Pelosi's options purchase disclosure, Tempus Ai stock is also getting a boost from the rollout of its AI-powered olivia healthcare app. The software is designed to combine and organize a patient's health data in a single source and use that information to generate care insights.

Tempus says that the software allows patients to connect electronic health record (EHR) data from over 1,000 healthcare systems and digital health devices. The app can then provide patients with timelines, summaries, and insights that can be used by healthcare teams.

Despite today's explosive gains, Tempus Ai is up just 16% over the last year of trading, as of this writing. It's also still down roughly 40% from the high it reached in November. The software specialist has a relatively short history as a publicly traded company, having just gone public this past June.

With the preliminary full-year results it published earlier this month, Tempus announced that it anticipates revenue to have grown 30% annually to reach $693 million in 2024. The rollout of its new software platform could help growth keep coming in strong in 2025.

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Keith Noonan 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.