Tempus AI Soars on $200 Million AstraZeneca Deal for AI-Powered Cancer Research

Tempus AI Stock Is Ripping Higher Wednesday: What's Fueling The Move? - Tempus AI (NASDAQ:TEM)

Tempus AI Inc TEM shares are surging Wednesday after the company announced a multi-year collaboration with AstraZeneca PLC AZN and Pathos AI. What To Know: Tempus AI announced a multi-year, strategic collaboration with AstraZeneca and Pathos to build a multimodal foundation model in oncology. The model, which will be built using Tempus' de-identified oncology data, is expected to be used for the collection of biological and clinical insights, the discovery of novel drug targets and the development of therapeutics for the oncology community as a whole. The agreement with AstraZeneca expands on the strategic partnership between the two companies. Tempus said the collaboration includes $200 million in data licensing and model development fees. "Generative AI and the emergence of large multimodal models is the final catalyst needed to usher in precision medicine in oncology at scale," said Eric Lefkofsky, founder and CEO of Tempus AI. "Tempus has spent the last decade investing billions of dollars into collecting the necessary data needed for a foundation model of this kind to take shape. We look forward to working with AstraZeneca and Pathos to apply AI-enabled solutions to advance therapies in an effort to help patients live longer and healthier lives." Tempus AI shares have seen a rise in popularity among retail investors this year ever since former House Speaker Nancy Pelosi disclosed a position in the company. A regulatory filling from January showed that Pelosi purchased 50 call options in Tempus AI on Jan. 14. The calls have a strike price of $20 and don't expire until Jan. 16, 2026. See Also: Nancy Pelosi Called US-China Trade 'A Job Loser:' Old Remarks Reemerge Amid Trump Tariff Push How To Buy TEM Stock Besides going to a brokerage platform to purchase a share - or fractional share - of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. For example, in Tempus AI's case, it is in the Health Care sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment. TEM Price Action: Tempus AI shares were up 16.5% at $50.37 at the time of publication Wednesday. The AI stock is up approximately 46% year-to-date, according to Benzinga Pro. Photo: Piotr Swat/Shutterstock. TEMTempus AI Inc$50.3516.5%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum-Growth-Quality-Value14.44Price TrendShortMediumLongOverviewAZNAstraZeneca PLC$68.540.99%Got Questions? AskWhich oncology companies might benefit from Tempus' model?How could AstraZeneca leverage AI in drug development?What impact will Tempus AI's collaboration have on biotech ETFs?Are there healthcare stocks poised to rise with AI advancements?Which investors are watching Tempus AI's growth closely?How might Pathos AI influence the oncology market?What other strategic partnerships could emerge from this collaboration?Which data analytics companies could benefit from oncology data trends?Will Tempus AI set a precedent for AI in healthcare?What are the potential risks for investors in Tempus AI?Powered ByMarket News and Data brought to you by Benzinga APIs

Why Tempus AI Stock Is Skyrocketing Today | The Motley Fool

Shares of Tempus AI (TEM 17.19%) were skyrocketing 16.5% higher as of 10:39 a.m. ET on Wednesday. The big gain came after the healthcare artificial intelligence (AI) company announced a multiyear partnership with AstraZeneca and Pathos AI to build a multimodal foundation model for cancer drug discovery and development. Tempus AI has invested heavily over the last decade to create one of the world's largest libraries of multimodal data that can be used in developing precision medicines. The company's de-identified oncology data will be critical in building the foundation model that AstraZeneca hopes to use to accelerate its development of new cancer drugs and increase the chances of success in clinical testing for its candidates. Tempus AI will receive $200 million in data licensing and model development fees from AstraZeneca. This amount almost exactly matches the amount of revenue the company generated in the fourth quarter of 2024. The healthcare AI company will also be able to use the multimodal foundation model it's building in collaboration with AstraZeneca and Pathos AI in its own efforts to improve patient care. This could bode well for Tempus AI's appeal to other big drugmakers seeking to harness the power of AI in their drug development processes. Risk-averse investors probably should look to other stocks to buy instead of Tempus AI. The company continues to lose money and is difficult to value. However, I think Tempus AI could be a smart pick for aggressive growth investors to buy and hold. The deal with AstraZeneca underscores the promise of its AI platform and data.

Tempus AI Is Skyrocketing Today -- Is the Stock a Buy Right Now? | The Motley Fool

Amid a bullish backdrop for the broader market, Tempus AI (TEM 15.29%) stock is posting big gains Wednesday. The company's share price was up 15.8% as of 1:45 p.m. ET. At the same point in time, the S&P 500 was up 2.1%, and the Nasdaq Composite had risen 2.8%. Investors are having a strong positive reaction to news that the Trump administration is apparently interested in getting a trade deal done with China and lowering tariffs in the not-too-distant future. In addition to buying momentum that's lifting valuations across the broader market, Tempus AI stock is climbing thanks to news that the company has formed a new partnership with AstraZeneca and Pathos AI. The team-up will see the trio of companies working to build an artificial intelligence (AI) model for oncology that can help generate clinical insights, aid in the discovery of new drug targets, and help develop treatments. Against the backdrop of an 8% decline for the S&P 500, Tempus AI has managed to rocket 48% higher across 2025's trading. As an early, specialized leader in healthcare AI software, the company has plenty of long-term promise -- but its valuation profile also comes with significant risk. The company's revenue increased 30.4% annually last year to reach $693.4 million, and its 55% gross margin in the period looks promising for a business that could still be in very early scaling stages. On the other hand, the company seemingly has a long way to go before shifting into profitability and recorded a net loss of $705.8 million last year. With a market cap of roughly $8.7 billion, Tempus AI is valued at approximately 12.6 times last year's sales. The business has huge expansion potential and will likely continue to serve up very strong revenue growth this year, but its heavily forward-looking valuation suggests the stock is probably only a good fit for investors with high risk tolerance. If you're interested in building a position in this AI healthcare software pure play, I would recommend dollar-cost averaging into the stock due to the potential for macroeconomic and geopolitical developments to spur continued volatility for the market in the near term.