10 AI News You Shouldn’t Miss

8. Tempus AI Inc (NASDAQ:TEM)

Number of Hedge Fund Investors: 18

Tempus AI Inc (NASDAQ:TEM) is a small-cap AI healthcare tech stock that provides AI-enabled precision medicine solutions. The company has been advancing in precision medicine through the practical application of artificial intelligence in healthcare.

On November 5, Needham analyst Ryan Macdonald raised the price target on Tempus AI Inc (NASDAQ:TEM) to $56.00 from $47.00 and maintained his “Buy” rating on the stock. The revised price target stems from Tempus AI Inc.’s third-quarter results, which exceeded expectations. The company delivered a revenue growth of 33%, reaching $180.9 million. In particular, their data and services revenue growth accelerated to 64.4% year-over-year (led by their insights or data licensing business), while genomics unit growth accelerated to 23.9% annually with rising average revenue per clinical test.

The company’s maintained guidance for the rest of the fiscal year is also highly achievable, noted the analyst. Tempus AI has also recently acquired Ambry Genetics, a strategic move for expanding Tempus AI’s testing portfolio. Tempus AI’s Tempus ECG-AF device, which uses artificial intelligence to identify patients at higher risk of atrial fibrillation/flutter, has also received FDA clearance some time back, fueling optimism about the stock.