Tempus AI Stock Plunge: The Real Reasons Behind This Week’s Bloodbath

Tempus AI shares are getting crushed—and Wall Street's favorite narrative is crumbling faster than a meme coin in a bear market.

The AI Hype Machine Hits a Wall

Investors are finally realizing that artificial intelligence requires actual revenue—not just buzzword-filled press releases. Tempus AI's plunge exposes the gap between technological promise and financial reality.

Market Reality Check

When the algorithms turn against their creators, even the most sophisticated AI companies can't escape basic market physics. The stock's descent mirrors the cold shower hitting overvalued tech plays across sectors.

Institutional Confidence Evaporates

Major funds are dumping positions faster than traders exit leveraged longs during a flash crash. The smart money knows when to cut losses—something crypto degens could learn from traditional finance for once.

Another week, another 'disruptive' tech stock discovering that profitability matters more than PowerPoint presentations. Maybe they should've tokenized their AI model instead.

Image source: Getty Images.

Ark Invest decides it's time to reduce its position in Tempus AI

Representing significant positions in more than one of Ark Invest's exchange-traded funds (ETFs), Tempus AI is ending the week with a smaller weighting in the(ARKK -2.06%). On Tuesday, Ark Invest trimmed the Tempus AI position in the ARK Innovation ETF by 62,352 shares, a transaction valued at about $5.2 million.

The decision to reduce the weighting of Tempus AI follows soon after the company announced it had received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for its RNA-based Tempus xR IVD device -- a tool intended to support drug development programs.

While the Cathie Wood-led ETF reduced its position in Tempus AI, the stock still retains a significant weighting in the, where it's the largest position with a 10.7% weighting as of the end of trading on Thursday.

Should AI investors follow suit and reduce their positions in Tempus AI?

Although investors may be disconcerted to see the ARK Innovation ETF reduce its Tempus AI position, it's worth noting that the AI stock still holds the pole position in the ARK Genomic Revolution ETF, so it's clear Cathie Wood isn't eschewing the stock completely.

Ark Invest ETFs frequently buy and sell stocks, and it wouldn't be surprising if the fund chooses to buy Tempus AI stock again if the stock drops much further. If you were bullish on Tempus AI stock yesterday, nothing should change today.