Shares of Tempus AI (NASDAQ:TEM) experienced a significant surge of 36% in midday trading following reports that former House Speaker Nancy Pelosi had been actively investing in the stock. Known for her keen stock trading prowess, Pelosi’s interest in Tempus sparked excitement among investors. According to data from the Unusual Whales site, which monitors congressional stock activity, Pelosi achieved an impressive return of 70.9% last year, outshining the S&P 500’s 24.9% growth. Notably, Democratic portfolios saw a 31% increase in 2024, surpassing the 26% rise in Republican portfolios.
The intriguing aspect of Pelosi’s investments lies in the ethical boundaries surrounding politicians engaging in stock trading based on privileged information acquired through their oversight roles. While regulations prohibit the use of insider knowledge for personal gain, the consistently robust performance of politicians’ portfolios compared to the broader market raises questions about potential improprieties. Moreover, the staunch opposition of many politicians to restrictions on their stock trading activities fuels suspicions of questionable practices.
Recently, Pelosi disclosed her stock trading activities, revealing nine separate transactions made between late December and Inauguration Day on Jan. 20. While most of these transactions involved stocks she already held, such as Nvidia (NASDAQ:NVDA), Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL), Pelosi also initiated two new positions in her portfolio. Notably, she acquired 50 call options in Tempus AI, with a strike price of $20 and an expiration date of Jan. 16, 2026, representing a trade value ranging from $50,000 to $100,000. Another notable purchase was in energy giant Vistra (NYSE:VST), where Pelosi bought 50 call options at a strike price of $50, with a transaction size between $500,000 and $1 million. VST stock witnessed a notable increase of over 6% following Pelosi’s investment.
The market implications of Pelosi’s involvement in Tempus AI are particularly intriguing. The healthcare-focused artificial intelligence company had its IPO last June at $37 per share, experiencing fluctuations in its stock price since then, reaching $79 per share in November before gradually declining. Tempus specializes in developing an AI-driven diagnostics platform for healthcare professionals, pharmaceutical companies, and patients, utilizing real-time patient data to train its large language models (LLM). The company boasts a platform claimed to be 50 times larger than The Cancer Genome Atlas (TCGA).
While the recent surge in Tempus AI’s stock price appears to be independent of the company’s operational performance, analysts on Wall Street have set a one-year price target of $56 per share for the stock, suggesting a potential 20% upside in its shares.
In summary, the intersection of political figures engaging in stock trading and the market reaction to their investments provides a lens into the complexities of ethical considerations and potential impacts on stock prices. Pelosi’s strategic acquisitions in
