**Tempus AI Rebounds After Short Seller Report Causes Stock Dive**

Tempus AI experienced a significant stock drop after Spruce Point Capital issued a critical report, but swiftly bounced back as the company responded to the allegations. The healthcare and artificial intelligence firm, which trades on the Nasdaq under the ticker TEM, faced intense scrutiny following the release of this damning analysis.

Short seller Spruce Point Capital has a history of exposing vulnerabilities in various companies, and this time turned its attention to Tempus AI. Their report estimated a potential long-term downside of "50%-60%" in TEM stock, mainly due to alleged issues in leadership and the firm’s AI capabilities. Founded in 2015, Tempus claims to revolutionize precision medicine, drug discovery, and diagnostics through artificial intelligence. Despite significant stock volatility, TEM has demonstrated a 35% rise for the year, with year-to-date gains reaching nearly 60%.

Spruce Point's critique suggested that Tempus over-hypes its AI potential, asserting that the company's technology failed basic operational checks, such as verifying patient age and sample sequencing. The report also highlighted that Tempus's AI applications accounted for only 2% of its revenue in 2024. This, combined with the claim that Tempus has not yet turned a profit or shown positive cash flow, cast substantial doubt on the company’s strategic comparisons to industry giants like Tesla and Nvidia.

In response, Tempus AI issued a statement on May 29, refuting the accuracy of Spruce Point's claims and characterizing them as misleading. The company urged investors to conduct their own research and pointed out the recent upward trends in other companies previously targeted by Spruce Point, which have seen an average stock increase of over 20% in the past four months. Tempus remains dedicated to its mission of enhancing healthcare through AI, standing firm on its record of financial growth and performance.