Why Tempus AI Inc. (TEM) Skyrocketed On Tuesday

We recently published a list of 10 Firms Crushing the Market. In this article, we are going to take a look at where Tempus AI Inc. (NASDAQ:TEM) stands against other firms that are crushing the market.

The stock market finished the trading day on a mixed note, as investors continued to digest April inflation figures, which came out lower than expected.

On Tuesday, the Labor Department reported that the Consumer Price Index for April rose by only 0.2 percent last month, bringing the annual inflation rate to 2.3 percent, its lowest annual rate since February 2021.

Among Wall Street’s main indices, only the S&P 500 and the tech-heavy Nasdaq registered gains, by 0.72 percent and 1.61 percent, respectively. The Dow Jones, on the other hand, was down by 0.64 percent.

Beyond the major indices, 10 companies finished the session with strong gains amid a flurry of positive developments, including ratings upgrades and impressive corporate earnings, among others.

In this article, we name Tuesday’s 10 top performers and detail the reasons behind their rally.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.

Tempus AI Inc. (NASDAQ:TEM)

Shares of Tempus AI grew by 9.92 percent on Tuesday to finish at $68.91 apiece as investor hopes were buoyed by the launch of an exchange-traded fund (ETF) that would track the company’s daily performance.

In a statement on Tuesday, Tradr ETFs, a provider of ETFs designed for sophisticated investors and professional traders, said that it launched the “Tradr 2X Long TEM Daily ETF (CBOE: TEMT),” which aims to deliver twice the daily performance of Tempus AI Inc.’s (NASDAQ:TEM) common stock.

“Since its IPO in June 2024, Tempus has gained significant momentum through its differentiated business model and compelling growth potential,” said Matt Markiewicz, Head of Product and Capital Markets at Tradr ETFs.

The introduction of ETFs tracking indices or single companies helps boost trading as it increases visibility to both retail and institutional investors.

Overall, TEM ranks 10th on our list of firms that are crushing the market. While we acknowledge the potential of TEM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TEM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.