Tempus AI, Inc. (TEM): A Bull Case Theory

We came across a bullish thesis on Tempus AI, Inc. on Make Money, Make Time’s Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls’ thesis on TEM. Tempus AI, Inc.’s share was trading at $65.65 as of June 23^rd.

Tempus AI (TEM) is a high-growth healthcare technology company that has captured investor attention, particularly due to its association with artificial intelligence. However, despite its positioning in the market, TEM is not yet a pure AI play, with approximately 75% of its revenue still derived from its core genomics business.

While the company has a compelling long-term vision and remains high on watchlists, its current fundamentals raise concerns. TEM is unprofitable, and although it enjoys a strong retail investor base and impressive growth, this alone is not enough to justify a large investment position. Valuation remains a sticking point: the stock trades at 9.4x next-twelve-month (NTM) sales and an extremely stretched EV/EBITDA multiple of 450x.

These levels suggest the stock price may have outpaced the underlying business fundamentals, fueled in part by speculative sentiment and the publicity surrounding notable investor interest, including trades linked to Nancy Pelosi. Despite these valuation concerns, TEM does exhibit several attractive characteristics—chief among them, its visionary leadership and the optionality embedded in its evolving AI-driven healthcare model. In the near term, the stock is expected to experience significant volatility, which could create tactical trading opportunities for investors.

However, until profitability improves and the AI narrative becomes more embedded in its actual revenue mix, TEM remains a speculative play with more questions than answers. For now, it’s a stock better suited for watchlists than core portfolios, but one that could become much more compelling as the business matures and valuation becomes more grounded in reality.

Previously, we covered a bullish thesis on Tempus AI, Inc. by Oliver | MMMT Wealth in April 2025, which highlighted the company’s diversified model, strong growth, and undervaluation at 6.0x NTM sales. The stock has appreciated approximately 52% since our coverage. The thesis still stands. In this new thesis, Oliver | MMMT Wealth emphasizes the long-term potential and warns investors about short-term volatility.

Tempus AI, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held TEM at the end of the first quarter which was 17 in the previous quarter. 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 have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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