Tempus AI stock rose nearly 24% on Wednesday, trading around $59.64, after Merck and Moderna announced a major Phase 3 success for their cancer vaccine program.

Tempus AI, Inc. (TEM)

The announcement landed quickly in the market. Tempus AI is in the process of acquiring Personalis for $1.5 billion, and Personalis provides the gene-sequencing technology that supports Moderna’s cancer vaccine program. A successful Phase 3 trial makes that acquisition appear significantly more valuable.

TEM reached a session high of $59.04 in the morning before extending its gains. The stock is now well above its 52-week low of $40.77, reflecting how closely investors are tying the company’s recent announcements to its role in cancer diagnostics, sequencing, and data licensing.

The rally is not driven by a single development. Several positive catalysts have accumulated for the company in recent weeks, giving traders multiple reasons to focus on the name rather than only the vaccine headline.

On July 30, Tempus AI reported its first-ever quarterly GAAP net profit of $5.6 million. That compared with a loss of $42.8 million in the same quarter a year earlier.

Revenue was $382.5 million, up 22% year over year. Management also raised full-year 2026 revenue guidance to a range of $1.595 billion to $1.605 billion, with projected Adjusted EBITDA of about $65 million.

Short Squeeze Adds Fuel

More than 26% of TEM’s float is sold short. That level of short interest can intensify a sharp upward move, as short sellers may be forced to buy shares to cover positions, adding further pressure to the stock.

On August 4, a study published in Nature Medicine validated TEM’s PRISM2 AI platform as a high-precision tool for cancer diagnosis and patient prognosis. The study provided independent scientific support for the company’s core technology.

Two days later, on August 6, Tempus AI announced a strategic partnership with CellCarta, making Tempus a commercial lab partner within CellCarta’s oncology companion diagnostics network.

Data licensing has also been a growth driver. The company said data licensing deals with pharma partners, including Merck and Gilead, increased 36% year over year.

Analyst View

Broader market conditions were stable but not the main driver of TEM’s move. The S&P 500 was up 0.4% and the Nasdaq was up 0.1% on the day.

Analysts currently have a Moderate Buy consensus on TEM, based on eight Buy ratings and seven Hold ratings over the past three months. The average price target is $62.15.

Over the past three months, TEM stock had gained 8% before Wednesday’s surge.

The average price target of $62.15 implies about 4% upside from current levels.