Tempus AI Fights Back After Short Seller’s Report Sends Stock Tumbling

Tempus AI Responds to Short Seller’s Harsh Report

Tempus AI (TEM) stock faced a sharp drop on May 28 after short seller Spruce Point Capital released a critical report targeting the company. Just a day later, Tempus issued a formal response addressing the allegations. As a healthcare and AI-focused company, Tempus began trading on Nasdaq in June 2024, attracting significant attention in a year with few prominent IPOs. Investors have been eager to add promising AI stocks like TEM to their portfolios.

Despite volatility, Tempus stock has mostly trended upward, currently showing a 35% gain for the year. Since the start of 2025, its year-to-date gains have approached 60%. The recent short report caused a dip in share prices, but the stock has rebounded. Tempus used the opportunity to challenge the report’s claims and clarify its position.

Spruce Point Capital’s Concerns Over Tempus AI

Founded in 2009, Spruce Point Capital is known for forensic short reports that critique companies across industries. In April 2025, it disclosed short positions in Clear Secure and Monster Energy. Their latest report focuses on Tempus AI, predicting a potential 50% to 60% long-term downside risk for investors.

Central to Spruce Point’s argument are doubts about Tempus’s leadership and the effectiveness of its AI capabilities. Tempus’s core business involves applying AI to precision medicine, drug discovery, and diagnostics. Its platform analyzes medical data to support patients, doctors, and researchers. However, Spruce Point warns that the market enthusiasm for Tempus’s AI may be exaggerated.

What This Means for Investors

• Tempus operates in a high-potential space where AI meets healthcare, but faces scrutiny over how well its technology delivers on promises.
• Short sellers like Spruce Point highlight risks related to management and technology that could impact long-term stock performance.
• Investors should weigh the company’s growth prospects against the skepticism voiced by experienced market analysts.

For those interested in the intersection of AI and healthcare, keeping an eye on Tempus’s developments and market reactions is essential. Staying informed on AI tools and their practical applications can also provide valuable context for evaluating companies like Tempus. Resources such as Complete AI Training’s AI tools for finance can offer additional insight into how AI is transforming industries relevant to this discussion.