We recently published a list of 10 AI News Taking Wall Street By Storm. In this article, we are going to take a look at where Tempus AI, Inc (NASDAQ:TEM) stands against other AI news taking Wall Street by storm.
Even though there is a looming threat of future curbs, some Asian hedge funds are betting big on Chinese tech companies, according to Reuters. Companies such as Xiaomi and Baidu are increasingly favored due to their innovations in artificial intelligence. Global investors may have been holding back because of the US’s ban on advanced chip exports. Yet, many others are optimistic about the opportunities in Chinese firms and the AI products that they are developing. Their valuations are lower than their US peers, and their large language models have been demonstrating rapid advancements.
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Even industry insiders and technology analysts have told CNBC that Chinese AI models are gaining popularity. Many are keeping pace with, and even surpassing in performance, than those in the US. As such, artificial intelligence has become the “latest battleground” for China and the US. The US has been tightening its restrictions on China’s access to advanced chips used in AI because of national concerns. As a result, China has been focusing on carving its own path for boosting the appeal and performance of its AI models.
This includes relying on open-source technology and developing their own super-fast software and chips. Chinese companies are developing open-source, or open-weight, LLMs. Developers can download them and build on top of them for free without having to obtain stringent licensing requirements from the inventor.
“In the last year, we’ve seen the rise of open source Chinese contributions to AI with really strong performance, low cost to serve and high throughput”.
-Grace Isford, a partner at Lux Capital, told CNBC.
In the latest innovations in artificial intelligence technology, China’s leading search engine company Baidu has launched a text-to-image generation tool for its ad clients. The company also plans to release AI glasses early next year as well as inaugurate its robotaxi service outside mainland China. Timothy Wang, chief investment officer at Monolith, predicts China’s homegrown AI-powered products and services are poised to grow in the coming year.
Hedge fund manager Sean Ho, CIO of Triata Capital which manages $770 million in assets, said about Chinese advancements in AI:
“We are seeing breakthroughs in AI software, such as text-to-video generation and multimodal AI…The high rankings of Chinese AI models on open-source platforms like Hugging Face reflect their ambition to lead globally, a trend that is unlikely to be derailed by ongoing tech conflicts”.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
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 Holders: 7
Tempus AI, Inc (NASDAQ:TEM) is a healthcare technology company that provides AI-enabled precision medicine solutions. On December 17, the company announced that the Centers for Medicare and Medicaid Services (CMS) will allow reimbursement for assessments of cardiac dysfunction using the Tempus ECG-AF algorithm. The ECG-AF is an FDA-authorized medical technology that will be impacted by the new CMS decision. The decision will allow hospitals to adopt Tempus’s technology for identifying patients at risk of atrial fibrillation/flutter (AF). Cardiovascular diseases are a leading cause of death around the globe, which is why it is crucial to identify patients at high risk for undiagnosed heart disease. Tempus ECG-AF provides clinicians with an AI-based clinical tool to help them be proactive about earlier disease identification and management.
“We are incredibly excited by this new Medicare ruling. This, combined with our FDA clearance earlier this year, has substantially lowered the barrier for clinicians to broadly adopt innovative technologies like ECG-AF to tackle undiagnosed cardiovascular disease”.
-Brandon Fornwalt, MD, PhD, Senior Vice President of Cardiology at Tempus.
Overall, TEM ranks 9th on our list of AI news taking Wall Street by storm. While we acknowledge the 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 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.
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