Summary
⚈ Despite a post-earnings dip, Tempus AI remains promising with raised guidance to $1.25B.
⚈ Pelosi’s call options on Tempus AI reflect long-term confidence, expiring in January 2026.
Nancy Pelosi’s most recent trade — a $50,001 to $100,000 investment in Tempus AI stock (NASDAQ: TEM) is increasingly looking like a wise move on the congresswoman’s part after the health technology company’s Q1 2025 earnings call was held on May 6.
The quarter was a double beat — earnings per share (EPS) came in at negative $0.24, ahead of estimates, which were pegged at negative $0.26. Revenues of $255.7 million also outperformed expectations of $248.5 million.
Despite the promising results, TEM stock closed at $52.19 on the day of the quarterly report, 3.48% lower than on the day prior. By press time on May 7, Tempus AI shares were changing hands for $51.30 in the pre-market trading session, an additional 1.71% lower.
However, even with the recent dip, Tempus AI stock remains an enticing buying opportunity on account of several tailwinds currently at play.
Why Nancy Pelosi’s AI stock remains a Buy
Calling the Q1 results satisfactory would be quite the understatement. Revenues increased by 75.4% on a year-over-year (YoY) basis, in tandem with a 99.8% YoY increase in gross profit coupled with adjusted EBITDA moving from -$43.9 million to $16.2 million in the same timeframe.
Now, let’s deal with the elephant in the room — valuation. Nancy Pelosi’s investment was made public through a mid-January periodic transaction report retrieved by Finbold’s congressional trading radar.
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What followed was a 154.45% surge, from $35.15 to $89.44 per TEM share. While it’s all but certain that the stock would be trading at a much lower valuation if Pelosi’s purchase didn’t happen, a significant dip has occurred. Moreover, the representative’s investment is in the form of call options with an expiration date of January 16, 2026 — so it’s obvious that Nancy Pelosi is in it for the long run.
Simply put, the rally which occurred due to her purchase has subsided as much as it possibly could — in the meantime, core operational metrics have come in much stronger than expected.
While we will certainly see revised coverage in the days and weeks to come, the most recent analyst stock price target revisions were positive. Tempus AI has also recently secured a lucrative $200 million deal with AstraZeneca and introduced Notetaker, an AI-powered clinical assistant for psychiatry.
Lastly, the company has increased full-year revenue guidance to $1.25 billion — and Chief Executive Officer (CEO) Eric Lefkofsky noted that the business is on track to be adjusted EBITDA positive by the end of 2025.
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