We recently compiled a list of the 5 Stocks That Started The Year On A High. In this article, we are going to take a look at where Tempus AI Inc. (NASDAQ:TEM) stands against the other stocks.
Anyone who’s looked at the market in the last couple of weeks will know that there were some events that shook investors. The revelation of DeepSeek AI’s capabilities resulted in record amounts wiped out from the valuations of many chip makers. Analysts have since then questioned the claims made by the Chinese, but most of the stocks haven’t been able to recover.
While geo-political issues looked to be dying down, Donald Trump initiated a tariff war by slapping tariffs on China, Mexico, and Canada. As a result, many stocks continue to tumble.
Despite all the above, the stock market boasted the best first 9 days of trading in a new presidential term since Barack Obama’s term started in 2013. This is incredible and continues to show the strength of the US economy.
We decided to come up with a list of stocks that helped the market post these amazing returns. To come up with our list of 5 stocks that started the year on a high, we only considered stocks with a market cap of at least $3 billion that outperformed the market in the month of January.
A scientist at a computer station, surrounded by a neural network of artificial intelligence code.
Tempus AI Inc. (NASDAQ:TEM)
Tempus AI Inc. is a healthcare technology company that provides molecular genotyping, polymerase chain reaction profiling, next-generation sequencing diagnostics, and other anatomic & molecular pathology testing. The company provides its services to pharmaceutical companies, healthcare providers, researchers, biotechnology companies, and third parties. As an innovative company with a focus on AI, it receives a lot of investor attention.
Cathe Wood raised her stake in the company in January by adding a further 600,000 shares to her company’s multiple funds. Even though TEM was only initiated in the ARK Genomic Revolution ETF (ARKG) in December, the weightage in the Ark Innovation ETF (ARKK) grew quickly to become the tenth-largest holding in the ETF. As things stand, TEM is 3.2% of ARKK’s total value.
Donald Trump’s inauguration and the subsequent focus on Project Stargate also propelled the stock forward. The company gained a healthy 69% on the back of the above two developments and is likely to continue delivering good performance for investors.
Overall TEM ranks 3rd on our list of the stocks that started the year on a high. While we acknowledge the potential of TEM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as TEM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
