Niche artificial intelligence (AI) company Tempus AI (NASDAQ: TEM) is a stock recently listed on the exchange that is making significant moves. On news that one of these was a strategic investment in a peer, investors bid the company's stock up by almost 22% on Wednesday. That was more than enough of a bounce to crush the S 500 index's 0.4% gain on the day.

Tempus AI revealed in a regulatory filing after market hours Tuesday that it had completed a fresh purchase of Personalis (NASDAQ: PSNL) shares under the terms of an investment agreement. The two companies had announced at the end of last week that they would be making the transactions.

Just over 9.2 million Personalis shares were purchased by Tempus AI by exercising two sets of warrants. The warrants were originally obtained in late 2023 and entitled Tempus AI to buy the common stock of its peer for either $1.50 or $2.50 per share. Exercising the warrants resulted in a total price of slightly more than $18.4 million for the buyer.

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Source Fool.com