New Price Target for AI Stock After Nancy Pelosi Buy
This AI stock could be at the forefront of a medical revolution.
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Artificial intelligence is revolutionizing many aspects of our lives. AI has already changed the way many of us learn, work and study, and is replacing jobs in data entry, customer service and manufacturing.
How will AI change the world of medicine? AI will disrupt the medical industry via its ability to analyze vast amounts of information in seconds. It will speed the development of new drugs and therapies, streamline the drug manufacturing process and interact with patients. These developments should lead to improved outcomes thanks to fast, accurate diagnoses.
New Kid on the Block
Chicago-based Tempus AI TEM is one of the companies at the forefront of this medical revolution. The stock jumped by about 8% on Monday, and has gained about 95% year to date. Tempus AI is up 22% since I wrote about this stock in January.
This stock is relatively new to the market; the initial public offering for Tempus AI occurred on June 14, 2024. With a market cap of $11.8 billion, this company has plenty of room to grow.
What can the Tempus AI chart tell us about the future direction of this stock? Over the past four months, Tempus AI has formed a series of rounded bottoms (areas shaded yellow).
While the rounded bottom is a bullish pattern, the stock hasn’t yet broken out. In order for the breakout to occur, Tempest AI needs to close above $70 (point A). In anticipation of this breakout, I’ve already opened a small position in Tempus AI, and will add to it on a break above $70, if that should occur.
New Target Is $90, and it Could Happen Fast
Where is Tempus AI headed after it breaks out? There is nothing preventing this stock from challenging its all-time closing high of $89.44 (point B). Because Tempus AI fell quickly and sharply from that high in February (area shaded blue), no subsequent support or resistance levels were created between the current price and the all-time high. This means a move to the $90 area or higher could happen quickly.
Nancy Pelosi is Long Tempus AI
Earlier this year, former Speaker of the U.S. House of Representatives Nancy Pelosi purchased 50 Tempus AI call options with a strike price of $20. With the stock trading in the high 60s, those calls are very much in the money. The calls are set to expire in January of 2026.
Some traders monitor Pelosi’s market moves, as she’s demonstrated an aptitude for stock picking.
At the time of publication, Ponsi was long TEM.
