7. Tempus AI (NASDAQ:TEM)
Number of Hedge Fund Investors: 33
Tempus AI (NASDAQ:TEM) runs cancer diagnostic tests and sells the resulting data and AI tools to pharmaceutical companies and research institutions. Its customers are the largest drug developers in the world — AstraZeneca, GSK, and Merck have all signed deals with individual values reaching up to $320 million. But the real moat is the data.
Tempus AI (NASDAQ:TEM) has over 45 million de-identified patient records spanning more than 500 petabytes, built up over years of running diagnostic tests, and no competitor can replicate that overnight. This data is a goldmine for pharma companies that need real-world clinical data to train AI models, design drug trials, and push treatments through FDA approval faster — which is why companies are lining up to sign deals. Net revenue retention was 126% in 2025, meaning existing customers spent 26% more than they did the year before, a strong signal that once a pharma company gets access to the platform, they keep coming back for more.
Aristotle Core Equity Fund stated the following regarding Tempus AI, Inc. (NASDAQ:TEM) in its Q1 2026 investor letter:
“Tempus AI, Inc. (NASDAQ:TEM) is a healthcare technology company specializing in AI-enabled precision medicine solutions. By leveraging AI and machine learning, Tempus connects laboratory test results with clinical data to improve patient care across multiple diseases. The company operates through three main business units: Genomics (Diagnostics), which offers advanced genetic testing and diagnostics; Data and Services, which commercializes de-identified healthcare data and supports clinical trials; and AI Applications, which develops algorithmic diagnostics and clinical decision support tools. Tempus collaborates with leading pharmaceutical and biotechnology firms, positioning itself as a key innovator in both oncology and broader healthcare markets.
In our opinion, Tempus stands out as a compelling investment opportunity due to its alignment with key secular trends such as AI, Data Analysis and Monetization, and Personalized Medicine. Since going public in mid-2024, Tempus has demonstrated impressive growth, driven by both organic expansion and strategic acquisitions like Ambry. The company’s robust portfolio in genomics and diagnostics—spanning oncology, hereditary risk assessment and advanced testing—along with its rapidly growing data and applications segment, positions Tempus at the forefront of personalized medicine. The company’s expanding database of over 45 million patient records enhances its value proposition to research partners, and ongoing innovations are expected to drive both revenue and average selling price growth, making Tempus well-situated to capitalize on the evolving healthcare landscape.”
