- ARK Investment Management, led by Cathie Wood, purchased Tempus AI shares this week, making it the only stock bought by the ARK Innovation ETF (ARKK) as it trimmed other tech holdings.
- The firm has poured nearly $28 million into Tempus shares this year, signaling conviction despite the stock hitting a one-year low.
- This accumulation follows Tempus’s expansion of AI-driven partnerships with major pharmaceutical firms like Daiichi Sankyo and Merck for precision oncology research.
In a notable display of selective conviction, Cathie Wood’s ARK Investment Management exclusively purchased shares of Tempus AI Inc. (TEM) this week even as the stock hit a one-year low. The ARK Innovation ETF (ARKK) acquired 51,881 shares worth $2.4 million on Thursday while trimming stakes in several large tech names.
The purchase was part of a broader accumulation, with ARK funds investing nearly $28 million in Tempus shares so far this year according to reports. Consequently, this buying spree highlights ARK’s targeted bet on the company’s future.
Meanwhile, the investment followed significant business developments for Tempus. The company recently expanded its role in precision oncology through new AI-driven collaborations with pharmaceutical giants.
These partnerships include a deal with Daiichi Sankyo to develop a cancer therapy and an expanded collaboration with Merck for biomarker discovery. Additional agreements were also formed with healthcare institutions like NYU Langone Health and Northwestern Medicine.
However, Wall Street analysts have shown mixed but generally confident sentiment. Firms like H.C. Wainwright raised their price target to $95, while Mizuho initiated coverage with a $100 target, calling precision oncology a $40 billion market.
Conversely, other analysts expressed caution; JPMorgan lowered its target to $60, citing “clouded visibility” around data-segment upside. Tempus reported Q4 revenue of $367.2 million, beating estimates, and projected fiscal 2026 revenue near $1.59 billion.
Retail trader sentiment, tracked on Stocktwits, has turned bearish recently after being extremely bullish a month ago. One user expressed optimism, noting “The only thing Cathie bought today was us here at Tempus.”
Another user suggested it was a good buying moment, stating “Experience told me that this is a good moment to buy… Cathie is loading up, so, [why] don’t we? It will boom, someday, but success needs pain.” TEM stock has declined 15% over the past year.
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