We recently published a list of 10 AI Stocks Analysts Are Focusing On These Days. In this article, we are going to take a look at where Tempus AI, Inc (NASDAQ:TEM) stands against other AI stocks analysts are focusing on these days.
Dennis Unkovic, a partner at Meyer, Unkovic & Scott, said in a latest program on CNBC that DeepSeek is the result of President Xi Jinping’s policy of prioritizing AI and tech research over the past few years. The analyst believes DeepSeek is the response of China to American tariffs.
“Today, if you take technology, maybe two-thirds of it is Western and one-third of it is Chinese. It’s clear to me that what the Chinese want to do is move the needle so they’re at least 50/50. What this means…. in the future, is you’re going to have a country that’s going to have to say, what kind of technology do I want to adopt? Is it technology from the West, or is it technology from China? So I think this is a strong opening salvo of the Chinese to the U.S., saying, if you want to put tariffs on me, this is the way we’re going to go.”
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For this article, we picked 10 AI stocks that are trending amid the DeepSeek-triggered selloff that rocked the markets. With each stock, we have mentioned the number of hedge fund investors. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Tempus AI, Inc. (NASDAQ:TEM)
Number of Hedge Fund Investors: 7
Cathie Wood is piling into little-known AI stock Tempus AI, Inc. (NASDAQ:TEM), amassing about 600,000 shares across multiple funds since early 2025. Tempus AI, Inc. (NASDAQ:TEM) now accounts for 3.2% of ARKK’s assets, with a market value topping $265 million.
Tempus AI, Inc. (NASDAQ:TEM) uses AI for precision medicine and diagnostics. The company works with 2,500 institutions to gather real-time clinical data from millions of cancer patients. Its products are broadly divided into three segments: Genomics, Data, and Applications. The Genomics segment focuses on conducting diagnostic tests to match therapies and compare treatments for similar patients, with billing handled directly through insurance or payers. Tempus AI, Inc. (NASDAQ:TEM) has a significant revenue base. Recently, Tempus AI acquired Ambry Genetics, which specializes in hereditary cancer testing, allowing the company to expand into new areas such as rare disorders, pediatrics, and cardiology.
Tempus AI, Inc. (NASDAQ:TEM) recently provided preliminary guidance for fourth-quarter revenues of approximately $200 million, bringing total revenues for the year to around $693 million. While consensus estimates had projected slightly over $206 million for the quarter to meet the original $700 million target for 2024, revenues still rose 30% year over year for the quarter.
Baron Discovery Fund stated the following regarding Tempus AI, Inc. (NASDAQ:TEM) in its Q3 2024 investor letter:
“Shares of Tempus AI, Inc. (NASDAQ:TEM) contributed to performance. Tempus is a cancer diagnostics company that provides genomic testing results. Tempus has also amassed an over 200 petabyte proprietary multimodal dataset that combines clinical patient data with genomic testing data. In addition to using this data to empower more intelligent diagnostics for its own tests, Tempus also licenses this data to biopharmaceutical companies which use it to design smarter clinical trials and identify potential new drug targets. We think this proprietary dataset is unique with meaningful barriers to entry, and brings meaningful value to biopharmaceutical R&D. As we mentioned in the letter from last quarter, shares have been incredibly volatile. We took advantage of this volatility to buy a meaningful position when shares sold off into the low $20’s per share from an IPO price of $37. When shares spiked into the mid-$70’s (likely due to short sellers covering losses as shares rose), we took profits on a meaningful portion of the investment as we believed valuation had become stretched (shares now trade in the high $40’s to low $50’s level). We like our position sizing now, and would add to the position at lower valuations. We believe that Tempus has significant growth ahead of it and we are excited about its unique business model.”
Overall, TEM ranks 10th on our list of AI stocks analysts are focusing on these days. While we acknowledge the potential of TEM, our conviction lies in the belief that under the radar 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.
