Although shares have retreated from their all-time high, those who bought shares one year ago are still looking at growth in their positions.
It’s been a busy summer for Tempus AI (TEM 0.52%). Founded in August 2015, the company is celebrating its 10-year anniversary this month. Tempus AI also recently celebrated its one-year anniversary as a public company, having held its initial public offering (IPO) in June 2024.
While strong enthusiasm for artificial intelligence (AI) has buoyed numerous stocks higher over the past year, it took some time before investors chose to pick up shares of Tempus AI after it became an investment option. Let’s see how investments in the healthcare company that’s using AI to improve patient care have panned out over the past year.
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Despite the ups and downs, shares are in the black
Consistent with many stocks when they debut on public markets, Tempus AI stock has demonstrated some volatility in its 14 months as a publicly held company. Shares began trading on June 14, 2024, at $40, but they quickly plunged 29% in their first week of trading.
Once the market got to know the company a little better, shares fared much better. After performing well in the first several weeks of 2025, Tempus AI stock hit a high-water mark and closed at $89.44 on Feb. 14, representing a 124% gain over its opening price.
Those who bought Tempus AI stock when it first became available have seen their investments grow 56% as of this writing, while investors who bought Tempus AI stock exactly one year ago — Aug. 5, 2024 — have seen their holding climb a slightly lower 51%. Those who invested $1,000 a year ago, now have a position valued at $1,510.
Is now a good time to load up on Tempus AI stock?
Because Tempus AI is unprofitable, traditional valuation metrics aren’t useful in assessing the stock’s price tag. However, its price-to-sales ratio of roughly 10 seems reasonable, considering its substantial market opportunity as it develops AI solutions to help physicians provide individualized patient care and assist researchers in discovering new pharmaceuticals.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
