Why Tempus AI Inc. (TEM) Soared on Thursday

We recently compiled a list of the 10 Firms Lead Thursday’s Rally on Better Earnings, Bargain-Hunting. In this article, we are going to take a look at where Tempus AI Inc. (NASDAQ:TEM) stands against the other stocks.

Optimistic sentiment continued to drive Wall Street on Thursday, with all major indices closing higher.

The Dow Jones Industrial Average rose by 0.38 percent, the S&P 500 grew 0.53 percent, and the Nasdaq Composite was up by 0.25 percent.

Ten companies posted notable gains, largely fueled by strong earnings results for the fourth quarter and full-year 2024.

To come up with Thursday’s top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A computer screen showcasing Artificial Intelligence and Machine Learning algorithms at work.

Tempus AI Inc. (NASDAQ:TEM)

Shares of Tempus AI surged by 12.65 percent to finish Thursday’s trading at $57.19 apiece despite the lack of clear catalysts that may have buoyed trading in the company.

Last week, Tempus AI recently unveiled what it called “olivia,” an AI-driven health concierge app designed to assist patients in managing their health.

Olivia empowers patients by bringing their health-related data into one central location and leveraging advanced AI to provide actionable insights. It is also designed to address two core objectives centralizing patients’ health data and making that data accessible and actionable through AI.

Tempus AI Inc. said the app enables patients to bring their health information into one unified platform. They can also connect directly to over 1,000 health systems through electronic health record (EHR) integration, sync data from health devices to track daily metrics, or manually upload health records.

Overall TEM ranks 6th on our list of Thursday’s top gainers. While we acknowledge the potential of TEM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TEM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.