Tempus AI stock remains in a bear market after crashing by 36% from its highest point in September last year. It has slumped to $66, with its market capitalization slumping from $17.8 billion in October to the current $12.1 billion. This article explores some of the top reasons why the TEM stock may rebound in the coming weeks.
Tempus AI reports record contract value
One main catalyst for the TEM stock price is that the company reported a surge in its Total Contract Value (TVL). Its value jumped to a record high of $1.1 billion as top companies in the pharmaceutical industry embraced its technology.
It entered deals with top companies like Pfizer, Eli Lilly, GlaxoSmithKline, and AstraZeneca. At the same time, many biotech companies like Aspera and Whitehawk have started using its solutions.
These numbers mean that the company’s growth accelerated in the last quarter of the year as the artificial boom gained momentum. The most recent results showed that its revenue surged by 84% in the third quarter to $334 million.
More data showed how the company’s growth was supercharged in the third quarter. For example, the gross profit nearly doubled to over $209 million, while the number of clinical tests soared by 33% to 217,000.
Most of its revenue was in its oncology testing, which made $139 million. It hereditary testing business made over $102 million, while the data and services rose to $81 million.
Tempus AI’s business will likely continue growing because of the size of its market and the fact that all companies are seeking to leverage the concept of artificial intelligence in their operations.
Tempus’ growth will accelerate
Most notably, a recent report showed that the use of AI in the pharmaceutical industry rose to $1.9 billion in 2025 and analysts anticipate it will reach $16 billion by 2034. Another report estimates that the industry will soar to over $25 billion by 2030. If this is correct, it means that Tempus AI will have a leading market share in it.
Additionally, the company has room to grow its business into other areas, replicating its success in the oncology business.
Wall Street analysts believe that the company’s fourth quarter revenue rose by 80% to $360 million. Judging by its recent statement and its history, chances are that its revenue will be much higher than what analysts expect.
A $360 million revenue will bring its annual figure to $1.26 billion, up by 82% from a year earlier. Analysts also expect its revenue to hit $1.57 billion in the coming year. The company will also break even soon.
Tempus AI is also not all that expensive, especially when you consider the rule of 40 metric. Its forward revenue growth is 82% against a net income margin of 18%. This brings its metric to 64%, which is good.
Tempus AI stock price technical analysis
The daily chart shows that the TEM stock price has slumped in the past few months. It has dropped from a high of $104.30 to the current $66.
A closer look shows that the stock remains above the ascending trendline, which connects the lowest swings in January, April, and December last year. This line has provided it with a substantial support level.
The Supertrend indicator has turned green, which is a highly bullish sign. Therefore, the most likely scenario is where Tempus AI stock rebounds and hits $104, its highest point last year. Such a move would signal a 47% surge from the current level.
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