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Tempus AI Shares Surge on Nasdaq Debut, Valuation Hits $6.6 Billion
Tempus AI, an artificial intelligence-driven genetic testing company backed by SoftBank Group, saw its shares rise 8.1% during its debut on the Nasdaq on Friday. This impressive start brings the company's valuation to $6.6 billion. The stock began trading at $40 per share, surpassing its initial public offering (IPO) price of $37.
The success of the IPO reflects a growing appetite among investors for AI-focused companies, spurred by the immense popularity of AI technologies like OpenAI's ChatGPT. Tempus AI’s promising launch could signal a positive trend for other companies planning to go public, as the U.S. capital market shows signs of recovery after a prolonged downturn spanning nearly two years.
Market's Renewed Interest
Tempus AI is part of a broader wave of AI companies that are attracting significant investor attention. The resurgence of the IPO market in 2024 comes after a notable dry spell, and several high-profile listings have already made successful debuts. These include the Chinese electric vehicle manufacturer Zeekr and the social media platform Reddit, both of which performed well upon their entries into the public market.
Strong Financial Backing
Chicago-based Tempus AI successfully raised $410.7 million from its IPO. The stock was offered at the upper end of its target range of $35 to $37 per share. The IPO was backed by a consortium of leading Wall Street firms, including Morgan Stanley, J.P. Morgan, and Bank of America Securities, among others, who underwrote the offering.
This strong financial support and the company's promising market debut underscore the viability and high demand for companies leveraging artificial intelligence to revolutionize sectors such as genetic testing.
