On January 14, Nancy Pelosi made a surprising investment in Tempus AI (NASDAQ: TEM) amounting to 50 call options with a strike price of $20 and an expiration date of January 2026.
Given the former House Speaker’s trading history and penchant for strategic picks, the trade attracted a lot of public attention. The same thing is happening now since TEM stock has gone up over 130%.
The surge was most likely driven by a series of strategic moves and product innovations, as well as new partnerships with the likes of The Abrams Research Center and Verastem Oncology.
Likewise, the launch of its advanced liquid biopsy assay highlighted the company’s deepening interest in artificial intelligence (AI).
TEM stock closed at precisely $72 on Monday, although at press time it is down -1.03% in pre-market.
Tempus AI stock outlook
Tempus AI delivered a total return of 97.37% over the last 12 months, outpacing the S&P 500’s 11.07% gain and health care sector’s -7.09% decline. However, despite bullish performance, Tempus AI reported a net loss of $68.03 million in Q1 2025.
Also adding to skepticism is the new class action lawsuit that has been filed against the company on behalf of all individuals and entities that purchased or otherwise acquired shares in the company between August 6, 2024, and May 27, 2025.
According to the complaint, Tempus and certain executives have allegedly misled investors by failing to disclose several material facts, most notably the value of certain contract agreements.
The complaint also questions Tempus AI’s joint venture with SoftBank, suggesting it may have created the appearance of “round-tripping” capital to artificially boost revenue.
Further concerns are raised over the acquisition of Ambry, which allegedly relied on potentially unethical billing practices.
All in all, while Nancy Pelosi’s January investment appears profitable for now, the outlook for TEM is far from certain.
Featured image via Shutterstock
