Introduction
In the dynamic world of healthcare technology, Tempus AI has emerged as a trailblazer, leveraging artificial intelligence to redefine precision medicine. As of July 11, 2025, Tempus AI, Inc. (NASDAQ: TEM) has captured significant attention from investors and industry experts, with its stock price reflecting both the promise and volatility of high-growth tech sectors. Currently trading at approximately $59.60 with a market capitalization of $10.528 billion, Tempus AI stock offers a unique opportunity for those interested in the intersection of AI and healthcare. This article provides an in-depth analysis of Tempus AI stock, exploring the company’s operations, financial performance, market position, and future prospects. Whether you’re a seasoned investor or new to the market, this guide aims to equip you with the knowledge needed to make informed decisions about investing in Tempus AI stock.
What is Tempus AI?
Tempus AI is a technology company dedicated to advancing precision medicine through artificial intelligence. Founded in 2015 by Eric Lefkofsky, Tempus has built one of the world’s largest libraries of clinical and molecular data, which it uses to create Intelligent Diagnostics. These diagnostics utilize AI, including generative AI, to enhance the accuracy and personalization of laboratory tests. The Tempus Platform, a cornerstone of its operations, comprises a technology platform that liberates healthcare data from silos and an operating system that makes this data actionable. Consequently, physicians can make near real-time, data-driven decisions to deliver personalized patient care. Moreover, Tempus supports the discovery, development, and delivery of optimal therapeutics, ensuring patients benefit from the treatment experiences of others.
The company offers a suite of innovative products. Tempus Hub, for instance, is a secure platform that streamlines clinical workflows, enabling physicians to order laboratory tests, track sequencing processes, and access patient insights derived from Tempus’s extensive data library. Similarly, Tempus Lens is an analytical platform designed for researchers, allowing them to access and analyze multimodal data to uncover insights and accelerate innovation. Additionally, Tempus Next, an AI-enabled care pathway intelligence platform, integrates data from various sources to guide providers in delivering the next step in patient care. These offerings position Tempus as a leader in precision medicine, with a strong focus on improving healthcare outcomes through AI.
Tempus AI’s Business Model
Tempus AI generates revenue through a diversified business model that includes genomics testing, data services, and AI-driven software platforms. In the first quarter of 2025, the company reported total revenue of $255.7 million, a remarkable 75.4% increase year-over-year. This revenue is divided into two primary segments: Genomics and Data and Services. Specifically, Genomics revenue, which encompasses precision medicine testing services, reached $193.8 million, up 88.9% from the previous year. Meanwhile, Data and Services revenue, which includes licensing de-identified data and providing analytical services to pharmaceutical and biotechnology companies, amounted to $61.9 million, reflecting a 43.2% year-over-year increase. Furthermore, Tempus’s subscription-based software platforms, such as Tempus Hub and Tempus Lens, contribute to recurring revenue streams as healthcare providers and researchers increasingly adopt these tools.
The company’s ability to integrate its vast data library with proprietary AI algorithms sets it apart in the healthcare industry. By offering end-to-end solutions—from diagnostic testing to data analytics and clinical decision support—Tempus creates a self-reinforcing cycle. As more physicians and institutions use its services, the company collects more data, which enhances its AI models, making its offerings more valuable. This network effect, combined with partnerships with approximately 95% of the top pharmaceutical companies, strengthens Tempus’s competitive position and supports its robust revenue growth.
Tempus AI Stock Performance
As of July 11, 2025, Tempus AI’s stock (NASDAQ: TEM) trades at approximately $59.60, with a market capitalization of $10.528 billion. Since its initial public offering, the stock has experienced significant volatility, a common trait for high-growth companies in emerging sectors. Over the past year, Tempus AI stock has fluctuated within a 52-week range of $31.36 to $91.45, delivering a year-to-date return of 76.54% and a one-year return of 70.29%. These figures highlight the market’s enthusiasm for Tempus’s innovative approach, though they also underscore the potential for price swings.
Analysts remain optimistic about Tempus AI stock, assigning it a consensus rating of “Buy” with an average price target of $65.09, suggesting a potential upside of approximately 9.2%. Notably, Guggenheim set a high price target of $75.00 on June 30, 2025, implying a possible 25.8% increase, while Loop Capital issued a lower target of $52 on January 14, 2025. The stock’s performance is bolstered by positive developments, such as Cathie Wood’s ARK purchasing 150,563 shares, signaling confidence from prominent investors. However, investors should be mindful of the stock’s volatility and the company’s current unprofitability when considering investment decisions.
| Metric | Value |
| Current Stock Price | $59.60 (as of July 11, 2025) |
| Market Cap | $10.528 billion |
| 52-Week Range | $31.36 – $91.45 |
| Year-to-Date Return | 76.54% |
| One-Year Return | 70.29% |
| Consensus Price Target | $65.09 |
| Analyst Rating | Buy |
Market Analysis and Competition
The precision medicine market is experiencing rapid growth, driven by advancements in genomics, artificial intelligence, and personalized healthcare. According to Precedence Research, the global precision medicine market was valued at $102.17 billion in 2024 and is projected to reach $470.53 billion by 2034, growing at a compound annual growth rate (CAGR) of 16.50%. This expansion is fueled by increasing demand for tailored treatments, the rising prevalence of chronic diseases like cancer, and technological innovations in diagnostics and therapeutics. North America, particularly the U.S., dominates this market, with a size of $55.17 billion in 2024, expanding at a CAGR of 16.52%.
Tempus AI operates in a competitive landscape that includes established diagnostic giants like Quest Diagnostics and LabCorp, as well as specialized precision medicine companies such as Foundation Medicine (acquired by Roche), Caris Life Sciences, Guardant Health, and Neogenomics. Additionally, emerging players like PathAI and Prognos Health compete in the AI-driven healthcare space. Tempus differentiates itself through its extensive data library, proprietary AI algorithms, and integrated software platforms that offer comprehensive solutions for physicians and researchers. The company’s partnerships with over 95% of the top pharmaceutical companies and its connectivity to approximately 65% of U.S. academic medical centers create a significant competitive moat, making it challenging for rivals to replicate its network effect.
| Competitor | Key Focus |
| Quest Diagnostics | Broad diagnostic testing services |
| LabCorp | Clinical laboratory services |
| Foundation Medicine | Genomic profiling for cancer |
| Guardant Health | Liquid biopsy and cancer diagnostics |
| Caris Life Sciences | Molecular profiling and precision oncology |
| PathAI | AI-powered pathology solutions |
| Prognos Health | AI-driven clinical data analytics |
Future Prospects and Growth Potential
Tempus AI’s future appears bright, with strategic initiatives poised to drive significant growth. In April 2025, the company announced expanded partnerships with AstraZeneca and Pathos AI to develop the largest multimodal foundation model in oncology, enhancing its AI capabilities and market reach. Additionally, Tempus expanded its AI-enabled care pathway intelligence platform into breast cancer on July 8, 2025, broadening its addressable market beyond oncology into other disease areas like neuropsychiatry and cardiology. The company’s first-quarter 2025 results, with revenue increasing 75.4% year-over-year to $255.7 million and gross profit rising 99.8% to $155.2 million, demonstrate its ability to scale operations effectively.
Analysts project that Tempus AI will achieve full-year 2025 revenue exceeding $1 billion, a milestone reached faster than any other precision oncology lab company. The company’s recent acquisition of Ambry Genetics on February 3, 2025, and the national launch of its FDA-approved xT CDx diagnostic device further bolster its growth prospects. Moreover, Tempus’s ability to attract investment from firms like ARK and its integration into clinical workflows and pharmaceutical R&D pipelines positions it as a leader in the precision medicine market. However, achieving profitability remains a critical goal, as the company continues to invest heavily in AI and data infrastructure.
Risks and Challenges
Investing in Tempus AI stock carries inherent risks, primarily due to the company’s current unprofitability. In Q1 2025, Tempus reported a net loss of $68.0 million, slightly higher than the $64.7 million loss in Q1 2024, though adjusted EBITDA losses have improved. The healthcare sector’s stringent regulatory environment poses another challenge, as changes in reimbursement policies or FDA regulations could impact Tempus’s operations. Additionally, the company faces intense competition from both traditional diagnostic firms and emerging AI-driven startups, requiring continuous innovation to maintain its edge.
The stock’s volatility, with a 52-week range of $31.36 to $91.45, reflects market uncertainties and the high-risk nature of growth stocks. Furthermore, Tempus’s reliance on technological advancements means that any failure to keep pace with AI or genomics innovations could erode its competitive position. Investors should also consider legal risks, such as the lawsuit from Guardant Health regarding liquid biopsy tests noted in Tempus’s S-1 filing. Despite these challenges, the company’s strong revenue growth and strategic partnerships mitigate some of these risks, but careful consideration is essential.
Conclusion
Tempus AI represents a compelling investment opportunity for those interested in the convergence of artificial intelligence and healthcare. With its innovative approach to precision medicine, robust revenue growth of 75.4% year-over-year in Q1 2025, and strategic partnerships with industry leaders like AstraZeneca, Tempus is well-positioned for future success. However, investors must weigh the risks, including the company’s current unprofitability, regulatory challenges, and stock volatility. As with any investment, thorough research and consideration of risk tolerance are crucial. For those seeking to diversify their portfolio with high-growth potential stocks, Tempus AI stock could be a valuable addition. Stay informed by visiting Tempus AI Investor Relations for the latest updates and consult a financial advisor before making investment decisions.
Meta Description:
Explore the potential of Tempus AI stock with this comprehensive guide. Learn about the company’s innovative approach to precision medicine, its financial performance, market position, and future growth prospects. Ideal for investors looking to understand the dynamics of AI in healthcare.
FAQs
What does Tempus AI do?
Tempus AI is a technology company that leverages artificial intelligence to advance precision medicine. It provides genomic sequencing, data analytics, and AI-driven software platforms to healthcare providers and pharmaceutical companies, enhancing patient care and accelerating drug development.
How does Tempus AI generate revenue?
Tempus generates revenue through two main segments: Genomics, which includes precision medicine testing services, and Data and Services, which involves licensing de-identified data and providing analytical services to pharmaceutical and biotechnology firms. Its software platforms, such as Tempus Hub and Tempus Lens, also contribute through subscriptions.
Is Tempus AI profitable?
As of Q1 2025, Tempus AI is not profitable, reporting a net loss of $68.0 million. However, the company has demonstrated significant revenue growth and is making progress toward profitability, with improved adjusted EBITDA figures.
What are the risks of investing in Tempus AI?
Risks include the company’s current unprofitability, regulatory changes in the healthcare sector, intense competition, and the need to continuously innovate in AI and genomics. The stock’s volatility also poses a risk for investors seeking stability.
What is the future outlook for Tempus AI?
The future outlook for Tempus AI is positive, with expanding partnerships, new product launches, and strong revenue growth. Analysts are optimistic, with a consensus “Buy” rating and an average price target of $65.09, indicating significant upside potential.
Citations:
- Tempus AI Investor Relations
- Yahoo Finance – Tempus AI
- Precedence Research – Precision Medicine Market