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Rep. Nancy Pelosi (D-CA) stands to make a massive profit on an options trade she made on an AI stock. The Nancy Pelosi tracker on X cited Pelosi's SEC disclosures, which show she bought 50 call options of Tempus AI (NASDAQ  TEM) stock options at a strike price of $20. Tempus AI's stock surged by 183% after Pelosi's disclosure became public. Keep reading to discover why Pelosi likes Tempus AI so much. 

The surge in Tempus stock is indicative of how many investors monitor and mimic Pelosi's  trading activity. They do that for one simple reason: she has an uncanny knack for making profitable trades. Cryptopolitan quotes information from the Unusual Whales website showing Pelosi investments generated an impressive 70.9% return in 2024. The S&P 500’s 24.9% return looks paltry by comparison.

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In fairness to Tempus AI, Pelosi can't take all the credit for their stock being hot. The AI sector is booming and Tempus has a proprietary AI analytics program, Lens. More importantly, Tempus AI just announced a partnership with the Institute for Follicular Lymphoma Innovation, which will use Lens to help develop cures for follicular lymphoma. Cryptopolitan reported that the global market for follicular lymphoma cures is expected to be worth $4.65 billion by 2030.

 Tempus AI also just released its Q4 2024 earnings and the highlights include: 

• Annual revenue of $693.4 million—a 30% year-on-year increase
• $381.1 million increase in annual gross profit—33.2% year-on-year increase
• $104.7 million in adjusted EBITDA–$49.5 million year-on-year increase

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The earnings release included a statement from CEO Eric Lefkofsky. "Our performance in 2024 reflects the strength of our core businesses, as Genomics continued to show strong volume growth, and our Data business delivered record results throughout the year," he said. Despite Lefkofsky's rosy outlook, Tempus AI shares fell sharply on cost concerns and are currently trading at $59.10.

That's a precipitous fall from Tempus AI's 2025 high of $89.71, which it hit on Feb. 18.  However, Tempus AI was trading in the $50 range right before news of Pelosi's options trades broke. Benzinga's survey of 11 analysts shows a consensus price target of $60.44 for Tempus AI, but the most recent targets from Needham, JPMorgan, and TD Cowan average $66.33, meaning there is still upside here.

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In either case, Pelosi's reported strike price of $20 means she stands to make a solid profit on her investment. It's also worth noting that Guggenheim, JP Morgan, and Needham all assigned a "Buy Now" recommendation to Tempus on Feb. 25.  They clearly share Pelosi's opinion that Tempus AI stock has strong upside potential.

Cathie Wood is another fan of Tempus AI. Benzinga reports that Wood's Ark Genomic Revolution ETF purchased 78,570 shares, while the Ark Innovation ETF recently purchased 367,388 Tempus shares in deals totaling just over $26 million. The short version of the story is that a lot of very astute investors are enamored with Tempus AI. If you're looking for an affordable AI stock with upside, Tempus AI might be worth considering.

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This article Why Does Nancy Pelosi Like Tempus AI (TEM) Stock So Much? originally appeared on Benzinga.com