SoftBank Group-backed Tempus AI shares surged over 15% after its Nasdaq debut Friday, valuing the AI-driven genetic testing company at around $6.6 billion.
The stock opened at $40 per share and rose to trade around $42.30 by midday, compared to the initial public offering (IPO) price of $37.
Tempus is among several AI-focused companies attracting significant investor interest, spurred by the success of OpenAI's popular chatbot, ChatGPT.
Based in Chicago, Illinois and founded in 2015 by Groupon cofounder Eric Lefkofsky, Tempus is a health tech company that utilizes AI to process medical data, enhancing patient care management.
Initially focused on oncology, Tempus has expanded into neuropsychiatry, radiology, cardiology, and infectious disease. Over 7,000 physicians have used its technology platform.
In 2023, Tempus said it generated $531.8 million in revenue, up from $320.7 million in 2022, but operated at net losses of $214.1 million and $289.8 million, respectively, during those years.
Tempus raised $410.7 million through the IPO, pricing its shares at the upper end of the expected range of $35 to $37.