Here’s What TD Cowen Thinks About Tempus AI Inc (TEM) Stock

Tempus AI Inc (NASDAQ:TEM) is among the best medical AI stocks to buy now. Tempus has partnered with SoftBank, Gilead, and Merck on AI-driven drug development programs. Analysts are growing more confident in Tempus amid its expanding partnerships. On April 13, TD Cowen upgraded Tempus AI Inc (NASDAQ:TEM) to a Buy rating from Hold, though it lowered the price target to $65 from $70. TD Cowen analyst Dan Brennan pointed to the company’s strong fundamentals for the upgrade, though Brennan noted the stock has eased around 50% over the past six months.

Here’s What TD Cowen Thinks About Tempus AI Inc (TEM) Stock

According to TD Cowen, Tempus’ Insights business is well-positioned for accelerated growth and forecast beat in 2026. The firm also expects continued growth in Tempus’ Genomics business. Tempus’ revenue increased 83.4% to $1.3 billion in 2025. The company is anticipating 2026 revenue to be $1.59 billion, implying a growth of 25%.

The Tempus-SoftBank pact, unveiled in June 2024, is structured as a joint venture and involves Tempus bringing its AI-driven treatment and clinical trial recommendations to the Japanese market.

Japan’s AI in healthcare market size is forecast to reach $2.29 billion by 2034 from $545.3 million in 2025, according to IMARC Group estimates. Factors like the increasing need for personalized medication, growing interest in remote patient monitoring, and the growing need to accurately forecast patient results are driving the market growth.

Tempus AI Inc (NASDAQ:TEM), based in Chicago, Illinois, offers precision medicine services. It makes use of data and artificial intelligence for this work. Although the company is primarily focused on cancer treatment, it’s expanding into areas like cardiology and infectious diseases. Tempus AI was founded in 2015 by billionaire Eric Lefkofsky.

While we acknowledge the risk and 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 time frame. If you are looking for an AI stock that is more promising than TEM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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