Tempus AI’s Sudden Drop: What Investors Should Know

Before this week, Tempus AI (TEM) had risen 161% since the start of the year, a remarkable surge for a healthcare firm developing artificial intelligence tools to enhance patient care. This week, however, a prominent investor reduced their stake, and the stock fell sharply.

Data from S&P Global Market Intelligence shows Tempus AI dropped 12.4% from the close of last Friday to Thursday’s market end.

Ark Invest scales back its Tempus AI holdings

Ark Invest, which holds significant stakes in multiple ETFs, decreased its position in the ARK Innovation ETF (ARKK) by 62,352 shares, worth approximately $5.2 million. This move followed the company’s recent FDA clearance for its RNA-based Tempus xR IVD device, a tool aimed at aiding drug development.

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Despite this reduction, Tempus AI remains the largest holding in the ARK Genomic Revolution ETF, with a 10.7% weighting as of Thursday’s close. Cathie Wood’s fund has not abandoned the stock entirely.

Should investors mirror Ark’s decision?

While the reduction in the ARK Innovation ETF may unsettle some, the continued presence in the Genomic Revolution ETF suggests caution rather than rejection. Ark Invest’s ETFs frequently adjust positions, and a rebound is possible if the stock declines further.

For those who believed in Tempus AI yesterday, there is no reason to change course today. The fundamentals remain intact, though the market’s mood has shifted.

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2025-09-26 03:04