The market's appetite for artificial intelligence (AI) stocks remains unyielding, and it doesn't seem poised to wane anytime soon. Shares of Tempus AI (TEM +0.75%), for example, rose 7.1% in April and 6.8% in May, and continued to climb higher at a more rapid pace last month. According to data provided by S&P Global Market Intelligence, Tempus AI stock climbed 15.2% in June.
In addition to a perspective on the critical report written about the company that's developing AI solutions for healthcare applications, analysts' auspicious opinions on Tempus AI stock and the company's development provided motivation for investors.
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About the critical report -- TD says there's nothing to see here; move along
Following the release of a critical report by Spruce Point Capital Management about Tempus AI in May, investors rushed to exit their positions. But the selling activity reversed course in early June when investors learned that TD Cowen was unmoved by the report. According to Thefly.com, TD Cowen's analyst found "some of [the] stated concerns misleading or incorrect."
Another catalyst for the stock's rise last month came from the company's introduction of its Fuses program. An initiative to provide even greater individualized care for patients, the Fuses program will grow the company's AI-assisted diagnostics and expand its comprehensive testing portfolio, using machine learning coupled with data from its expansive library.
Bullish sentiment from Wall Street helped Tempus AI stock sustain the gains it had logged throughout the month. On June 25, an analyst from Bank of America raised the price target on Tempus AI stock to $70 from $68, and on June 30, Guggenheim raised its price target to $75 from $65. For context, Tempus AI closed at $55.18 on the last day of trading in May.
NASDAQ: TEM
Key Data Points
Is now a good time to buy Tempus AI stock?
With shares of Tempus AI climbing steadily over the past several months, it's reasonable for prospective investors to question whether they've missed the boat. At this point, though, it seems that this is hardly the case. Tempus AI is early in its development, and the use of AI to provide individualized healthcare is a nascent industry that will likely boom in the coming years.
Naturally, Tempus AI stock will face some volatility as the company strives to overcome the hurdles that face growth companies. Those with long investing horizons, however, would be well advised to give the stock a serious look, as there certainly remains plenty of potential for the stock to soar even higher.
