Tempus AI (TEM) – Sitting at the Crossroads of AI and Precision Diagnostics
Tempus AI (NASDAQ: TEM) has only been publicly traded for a short time, but it’s already caught our attention for the right reasons. This isn’t your typical AI story — it’s not chasing the trend, it’s applying it. And that difference matters.
The company has built one of the largest molecular libraries of cancer patients in the world and is using generative AI to do something far more impactful than writing content or generating code: it’s building tools to make diagnostic medicine faster, smarter, and more personalized. While oncology is the focus now, Tempus is actively expanding into cardiology and other complex disease categories — and that opens up a significantly larger addressable market over time.
Here’s what makes this especially interesting from an investor standpoint: Tempus has already reached $1 billion in revenue faster than any other company in its space, and it’s guiding for 30% year-over-year growth in its core business in 2025. That kind of traction is rare for a newly public company — and it’s not being fueled by hype, but by adoption.
At its current price of $40.98 (as of April 21, 2025), Tempus shares have already gained about 20% year to date, but many investors are still on the sidelines. Coverage is still limited, and while analysts are split between “buy” and “hold,” the average price target sits at $62.38, implying over 50% upside from current levels. BTIG, one of the early firms to initiate coverage, has a $60 target, calling Tempus a company “at the intersection of multiple megatrends.”
We tend to agree. As AI continues to move from hype to utility, companies like Tempus that are solving real, high-value problems in healthcare data — and doing it at scale — could see significant revaluation in the quarters ahead.
