Tempus AI Inc. ( TEM ) on Tuesday inked a strategic collaboration agreement with Merck & Co. Inc ( MRK ). aimed at accelerating AI-driven precision medicine.

The stock’s decline comes as broader markets experienced significant sell-offs, with major indices like the S&P 500 and Nasdaq both trading lower today.

Tempus announced an expanded, multi-year collaboration with Merck ( MRK ) to enhance the discovery and development of precision medicine biomarkers.

The partnership will leverage Tempus’ extensive library of de-identified multimodal data and its advanced Lens Platform, which utilizes one of the industry’s largest GPU infrastructures for complex analyses.

The collaboration is expected to support Merck’s oncology and potentially broader therapeutic portfolios, allowing for the identification of novel precision biomarkers and mechanisms of cancer cell resistance.

The strategic move underscores Tempus’ commitment to integrating AI technologies into healthcare, aiming to improve patient outcomes through personalized medicine.

In February, Tempus AI ( TEM ) reported quarterly losses of four cents per share, in line with the consensus estimate.

Quarterly revenue came in at $367.21 million, which beat the Street estimate of $362.29 million and was up from $200.68 million in the year-ago period.

The broader market experienced a downturn on the previous trading day, with the S&P 500 falling by 1.78% and the Nasdaq declining by 2.18%.

This market environment may be contributing to the downward pressure on Tempus shares, indicating that the stock is moving in line with broader market trends.

Tempus AI Technical Analysis

The stock is currently trading 9.8% below its 100-day simple moving average (SMA), indicating potential weakness in the longer-term trend. Over the past 12 months, shares have decreased in value and are currently positioned closer to their 52-week lows than highs.

The RSI is at 44.45, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, MACD is at 0.15, below its signal line at 0.22, indicating bearish pressure on the stock.

The combination of neutral RSI and bearish MACD suggests mixed momentum, indicating that traders should watch for potential shifts in market sentiment.

Key Resistance: $54.00

Key Support: $48.00

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $74.31. Recent analyst moves include:

JP Morgan: Neutral (Lowers Target to $60.00) (Feb. 25)

Needham: Buy (Lowers Target to $75.00) (Feb. 25)

BTIG: Buy (Lowers Target to $90.00) (Feb. 25)

TEM Price Action: Tempus AI ( TEM ) shares were down 1.56% at $52.48 at the time of publication on Tuesday, according to Benzinga Pro data.

Image via Shutterstock