Tempus AI Surges in Nasdaq Debut Following IPO

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Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published June 14, 2024
Logo of Tempus AI is seen on a smartphone against a screen displaying a trade markets illustration on April 15, 2024 in Krakow, Poland.

Dominika Zarzycka / NurPhoto via Getty Images

Key Takeaways

  • Tempus AI began trading on the Nasdaq after selling 11.1 million shares in an initial public offering.
  • Shares priced at $37 each, at the high end of the company's target, and opened trading Friday at $40, rising to nearly $44 before fading somewhat.
  • Google is among those investing in the medical technology firm.

Shares of healthcare technology firm Tempus AI surged Friday as they began trading on the Nasdaq.

Trading under the ticker symbol “TEM," Tempus AI shares opened at $40 each, $3 above their initial public offering (IPO) price. They jumped nearly 18% to $43.64 at one point before fading to $38.30 as of 2 p.m. ET, a rise of 3.5%.

The company sold 11.1 million shares in the IPO, and the $37-per-share price was at the high end of its target range of $35 to $37. Tempus said the sale raised $410.7 million.

Google-Backed Tempus Uses AI to Process Medical Data

The company uses AI to analyze medical tests to help doctors better treat their patients. Alphabet’s (GOOGL) Google is among the investors in the firm.

Founder and Chief Executive Officer (CEO) Eric Lefkofsky, who was also the founder of e-commerce marketplace Groupon (GRPN), told CNBC that while Tempus is still a money-losing business, it expects "sometime in 2025 to turn the corner and be both cash flow positive and adjusted EBITDA positive.”

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  1. Tempus AI. "Tempus Announces Pricing of Initial Public Offering."

  2. Bloomberg. "Medical Data Firm Tempus AI Rises After $410.7 Million IPO."

  3. CNBC. "Google-backed Tempus AI pops by as much as 15% in Nasdaq stock market debut."

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