Tempus: Short Seller Attack Brings Golden Opportunity Cathie Wood Was Waiting For

Tempus AI Inc. TEM just got hit with a short seller grenade—and Cathie Wood showed up with a shopping cart.

Shares of the precision medicine player plunged over 19% on Wednesday after Spruce Point Capital launched a scathing report targeting the company's credibility and AI prowess.

But while the Street panicked, Wood's ARK ETFs swooped in, grabbing 251,080 shares worth over $16.5 million. Clearly, she sees blood in the streets—and potential on the charts.

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Golden Cross Meets Golden Opportunity

Amid the chaos, Tempus quietly flashed a bullish technical indicator: a Golden Cross. That's when the 50-day simple moving average crosses above the 200-day simple moving average—a classic sign that the long-term trend is strengthening.

Despite the short-term carnage, the stock still trades above both the 50-day and 200-day simple moving averages—at $55, compared to $52.61 and $52.18, respectively. That's a bullish signal. The Moving Average Convergence Divergence (MACD) indicator sits at 1.76, adding to the bullish case. Even the Relative Strength Index (RSI) reads 47.07, skirting just under neutral territory—suggesting the stock isn't overbought or oversold.

Bears In Control For Now

That said, the near-term trend remains shaky. With the stock trading below its eight-day, and 20-day simple moving averages, there's clear selling pressure. Technically, that flags a bearish trend in the short term, despite the promising long-term crossover.

But that's precisely the setup Wood seems to love: a company with long-term vision, currently misunderstood by the market—and cheap.

Betting On Data, Not Doubt

Tempus AI has yet to turn a profit, but it's building something substantial. It supported nearly 1,500 research projects over the past decade and reported a solid revenue beat in the first quarter. Critics can debate the AI capabilities, but the company's reach in precision medicine is real.

If Wood is right, this pullback may go down as a textbook shakeout—and the Golden Cross, a signal of what's to come.

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