We just covered the 10 Stocks That Will 10X According to Social Media. Tempus AI (NASDAQ:TEM) ranks #7 (see 5 Stocks That Will 10X According to Social Media).
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 …..(Click Here to Read the Letter in Detail).”
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 the cheapest AI stock.
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