We recently published a list of Cathie Wood’s Top 12 AI Stock Picks in 2025. In this article, we are going to take a look at where Tempus AI Inc. (NASDAQ:TEM) stands against other Cathie Wood’s top AI stock picks in 2025.
Since founding ARK Investment Management in 2014, Cathie Wood has earned her place next to legends like Warren Buffet, Ken Fisher, and others. Wood’s investment philosophy centers around identifying and investing in disruptive innovation, which she has put to great use through ARK Innovation ETF.
Historically, Wood has favored tech stocks. She put substantial value into tech companies that promised to disrupt their respective industries through innovation. That hasn’t changed much, and if anything, she seems to be doubling down. Since the beginning of the year, Wood has seemed to smell great opportunities in artificial intelligence (AI). In fact, the latest installment of ARK Invest’s research, ARK’s Big Ideas 2025, puts AI up there in terms of today’s most transformative innovations.
READ ALSO: Paul Singer’s Latest Portfolio: Top 10 Stock Picks and 10 Best Stocks to Buy According to Seth Klarman.
Wood recently commented on the research in a video posted on ARK Invest’s YouTube channel, and her takeaways confirm that she is all in on AI. Right from the start, she believes AI is the story today and in the future. She said:
“AI has been the big story for the past two years, and it’s still the big story. In fact, it is the biggest catalyst to all of the innovation taking place out there uh, it is the reason that the world seems to be speeding up.”
In fact, Wood is convinced that the ongoing AI-driven productivity will put an end to the rolling recession. She said this in her podcast “In the Know,” which outlined a bullish vision of technological innovation driving real GDP growth. While referencing the economic decline that she believes has been ongoing since the Fed began raising rates in 2022, she said, “We’re coming to the end of [the rolling recession]. The bad news is we do have to go through this process.”
Wood and her investment firm have built a reputation for making high-conviction bets on early-stage companies (and industries). Interestingly, one of the key paragraphs in ARK’s Big Ideas 2025 focuses on the risks of investing in innovation. While it points out the risks, it also gives away one of the core beliefs that makes Wood the investor she is: “Risk is how you unlock exponential growth.”
Our Methodology
We reviewed ARK Investment Management’s 13F holdings, as of Q4 2024 and selected the fund’s top 12 AI stock picks. We then ranked the top 12 AI stocks in ascending order based on ARK Investment Management’s stake value. Additionally, we have mentioned the hedge fund sentiment around each stock, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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Tempus AI, Inc. (NASDAQ:TEM)
ARK Investment Management’s Stake Value: $186.34 Million
Number of Hedge Funds Holding Stakes: 17
Tempus AI Inc. (NASDAQ:TEM) is another pure-play AI stock in Cathie Wood’s portfolio. The firm leverages the technology to advance precision medicine and improve patient care. It offers a platform that collects and analyzes clinical and molecular data. The data is then analyzed, and the insights help physicians to optimize treatment decisions for cancer and other diseases.
Recently, Tempus AI Inc. (NASDAQ:TEM) revealed that it had acquired Deep 6 AI. Deep 6 AI is a leading AI-powered precision research platform for healthcare organizations and life sciences companies. This platform is integrated with over 750 provider site locations spanning more than 30 million patients. The platform helps healthcare organizations de-risk clinical trials, accelerate recruitment, and generate real-world evidence.
The company’s latest financial report indicates that revenue for Q4 2024 expanded by 35.8% year-over-year, reaching $200.7 million. Most of the growth came from the data and services segment, whose revenue grew by 44.6% year-over-year. For the full year, annual revenue increased 30.4% to $693.4 million, with the company ending 2024 with $940 million in total remaining contract value and 140% net revenue retention.
Eric Lefkofsky, Founder and CEO of Tempus, emphasized the impact of AI, stating, “We believe our investments in AI have positioned us well for the future, as technologies that seemed unimaginable a few short years ago increasingly allow us to make our diagnostics intelligent, helping patients live longer and healthier lives. We remain on track to achieve our key financial milestones, with expected robust revenue growth and positive Adjusted EBITDA in 2025.”
Overall, TEM ranks 7th on our list of Cathie Wood’s top AI stock picks in 2025. While we acknowledge the potential of TEM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than 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 is originally published at Insider Monkey.
