Tempus AI shares (NASDAQ: TEM) have garnered attention, with the stock experiencing significant growth at the beginning of 2025, particularly given the company’s focus on leveraging artificial intelligence in the healthcare sector. As a relatively new public company, with its Nasdaq listing occurring in June 2024, the question of whether to buy or sell these shares is a key consideration for many investors looking to gain exposure to AI in the healthcare sector.
While we do not provide specific investment advice, we can offer valuable resources to assist with your decision-making. The latest Tempus AI forecasts, share price targets, and analysis from leading financial institutions can be found below. The insights, combined with your own understanding of how to value shares, will empower you to make informed decisions for your portfolio.
Tempus AI Share Price & Chart
While Tempus AI shares declined towards the end of 2024, the start of 2025 signalled a strong rebound, with the stock hitting a new high of over $91 a share. However, it again pulled back sharply, before setting returning to prior highs, and setting new ones at $104.32 in September. The stock remains more than 100% higher on a YTD basis ~$71 heading into the final stages of the year.
P/E Ratio Average (End of 2024): -5.44
Tempus AI EPS and Revenue Breakdown 2022-2024
| TEM | Annual EPS | Annual Revenue |
|---|---|---|
| 2022 | -$5.30 | $320.67 million |
| 2023 | -$4.20 | $531.82 million |
| 2024 | -$6.23 | $693.40 billion |
Tempus AI operates in healthcare technology, using artificial intelligence to advance precision medicine. The company was founded in August 2015 by Eric Lefkofsky, with an aim to “provide the necessary tools to usher in an era of precision medicine.”
Tempus AI has quickly become a strong player in the AI healthcare space, particularly for investors seeking exposure to the intersection of technology and medicine.
The company’s offerings include AI-enabled precision medicine solutions, which it says can help “accelerate the discovery of novel targets, predict the effectiveness of treatments, identify potentially life-saving clinical trials and diagnose multiple diseases earlier.”
Tempus AI Stock Forecast
Data compiled by TradingView shows that of the 14 analysts covering the stock, seven have a “Buy” rating, while the rest currently have a “Hold” rating on Tempus AI.
A View From the Bulls: Analysts at BTIG recently raised their price target for Tempus AI to $65 from $60 a share, maintaining a Buy rating on the stock. Reacting to TEM’s latest quarterly results, the firm said it delivered a solid Q1 revenue beat. They highlighted the 31% year-over-year core Tempus genomics revenue, 43% YoY growth in data revenue, and the better-than-expected contribution from TEM’s recently acquired Ambry Genetics hereditary testing business. The firm also believes Tempus’ opportunity in MRD is likely not priced into the stock.
In a note released prior to the company’s earnings, BTIG stated that recent news of Tempus AI signing a $200 million expanded strategic agreement with AstraZeneca and Pathos AI demonstrates the value of TEM’s data business. They stated that Tempus’ AI applications and data business represent a “significant free call option for investors.”
A View From the Bears: On the other hand, shares of Tempus AI were recently impacted by a short report from Spruce Point Management. The short-selling firm said that based on its investigation into the company, it estimates “a 50%-60% potential long-term downside and market underperformance risk.”
Spruce Point made several claims regarding the company’s management, accounting practices and core operations. The firm argued that the deal announcement with AstraZeneca and Pathos AI “merit scrutiny, as they appear to be weakening and ultimately signal pressures to the company.”
Average Analyst Consensus 12-Month Price Target: $64.91
Our View: While the opportunities related to the use of AI in the healthcare sector sound like an exciting prospect, the recent short report from Spruce Point suggests that investors should exercise caution and thoroughly research the claims and business before making an investment decision.
Who Should Buy Tempus AI Shares
As with any investment, a thorough evaluation is essential. Below is an overview of investor profiles who might consider Tempus AI shares attractive:
Tempus AI carries both growth potential and inherent risks, including the challenges of healthcare regulation and market adoption. Investors comfortable with the volatility often associated with high-growth biotech and tech companies may find Tempus AI shares appealing.
As a company leveraging AI, Tempus AI appeals to investors optimistic about the transformative power of artificial intelligence within the healthcare industry.
Investors who believe in the continued shift towards data-driven medicine may feel Tempus AI offers a way to capitalise.
Investors seeking opportunities in high-growth areas might see Tempus AI as a compelling addition to their portfolios.
