In January 2025, former House Speaker Nancy Pelosi made a surprising trade in American health technology company Tempus AI (NASDAQ: TEM), and the equity has experienced a meteoric rise since then.
Indeed, the stock’s return since her transaction has so far lived up to the prowess of Pelosi’s congressional trades, which have recorded successful returns amid rising concerns over the use of insider information.
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Regarding the transaction, the lawmaker disclosed on January 14 the accumulation of 50 call options in Tempus AI with a strike price of $20 and an expiration date of January 16, 2026. At that time, TEM shares were trading at $31.83.
As of February 11, less than a month later, Tempus AI’s stock price has surged to $76.74, marking a 141% increase. Notably, TEM has seen strong short-term momentum, with the equity up 128% in the past month.
Now, if an investor had mirrored Pelosi’s strategy and put $1,000 into Tempus AI on January 14, the amount would now be worth approximately $2,411, reflecting a massive gain of $1,411 in less than a month.
Why TEM stock is rallying
Tempus AI, which went public in June 2024, focuses on artificial intelligence (AI)-driven precision medicine, aiming to revolutionize healthcare through advanced data analytics and machine learning.
Notably, the stock has gained significant public interest since Pelosi’s purchase. Given that the politician is known for what is considered strategic stock picks, attention from investors may have shifted to the then-little-known equity, as it was cheaply available then.
The recent price surge has been bolstered by the general interest in AI technology and the company’s strategic moves. For instance, Tempus AI recently acquired Ambry Genetics, adding a profitable germline testing lab with over $300 million in revenue to its portfolio, boosting growth and margins.
Additionally, the firm launched Olivia, an AI-powered health concierge app that streamlines patient data for precision medicine. Tempus AI also partnered with Genialis to validate RNA-based biomarkers for WEE1-targeted cancer therapies, strengthening its foothold in precision medicine.
What next for TEM stock price
Looking at the next trajectory for TEM stock, an analysis by TrendSpider in an X post on February 11 suggested that the equity is gearing up for a possible record high above $100.
Specifically, the 1.618 Fibonacci extension, which stands at $114.47, is a longer-term price objective and remains in sight if the current bullish momentum is sustainable.
Growing investor interest in the stock, with a notable increase in buying volume, supports the possibility of hitting this mark.
Additionally, the analysis noted that Pelosi’s strategic purchase in the accumulation zone has potentially added intrigue, as stocks linked to such high-profile investors often attract considerable interest.
Breaking the previous resistance level at $79.49 is crucial for the next move, as it could become a strong support level. If the breakout holds, the next psychological hurdle at $100 could be tested, followed by the Fibonacci extension level at $114.47.
However, caution is warranted as TEM has seen notable insider trading activity, which might signal short-term headwinds for the company.
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