Shares of Tempus AI (TEM), a healthcare technology firm applying AI solutions to enhance disease diagnosis and treatment, soared 7.11% during Wednesday's intraday trading session. The stock's rally was driven by a combination of factors, including the company's strong fourth-quarter earnings, a vote of confidence from prominent investor Cathie Wood, and growing investor interest in AI-driven healthcare innovations.

Tempus AI reported impressive financial results for the fourth quarter, posting a narrower-than-expected loss of $13 million, significantly lower than the $50.5 million loss recorded in the same period last year. Revenue for the quarter rose 36% year-over-year to $200.7 million, although it fell slightly short of analysts' expectations. Notably, the company provided an upbeat outlook for 2025, forecasting revenue of $1.24 billion, representing a substantial increase from the $693.4 million reported in 2024.

The company's strong performance and optimistic guidance caught the attention of Cathie Wood's Ark Invest, which seized the opportunity to buy the dip after Tempus AI's stock recently took a 15% hit. Ark Invest acquired a total of 445,958 shares of Tempus AI through its Ark Innovation ETF (ARKK) and Ark Genomic Revolution ETF (ARKG), signaling its confidence in the company's long-term potential in the AI healthcare space.