Tempus AI (TEM) traded higher Friday as investors reacted to a fresh bullish analyst call. TD Cowen upgraded TEM to Buy from Hold and set a $65 price target, arguing that the company’s fundamentals have improved despite a steep prior selloff and that Tempus’ AI/data operation is positioned to accelerate in 2026.

The analyst thesis centers on Tempus’ Insights business, described as a key AI-driven data operation that could see faster growth as demand rises among pharmaceutical companies for AI-enabled R&D tools and services. TD Cowen also flagged continued momentum in the Genomics segment, suggesting potential upside beyond current expectations as volumes and product adoption expand.

The upgrade lands after a series of recent partnership headlines that have kept Tempus on the radar as life-sciences companies increasingly pay for high-quality multimodal clinical, genomic, and real-world datasets paired with analytics. Earlier in April, Gilead expanded its collaboration with Tempus to gain enterprise-wide access to Tempus’ AI-powered Lens platform for oncology workstreams such as trial design, biomarker strategy, and real-world evidence generation—reinforcing the narrative that big-pharma data demand is becoming a durable tailwind.

With shares rebounding, investors will focus on whether Tempus can convert partnership activity into sustained revenue acceleration and improving profitability, particularly within Insights. Any incremental contract wins, platform expansions (including Lens access deals), and evidence of operating leverage in upcoming results are likely to be the next key swing factors for the stock.