Tempus AI: A Healthcare Hyper-Growth Opportunity For The Risk Tolerant

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Brendan O'Boyle2.1K FollowersFollow5ShareSavePlay(16min)CommentsSummaryTempus AI (NASDAQ:TEM) is rated a strong buy for risk-tolerant investors, leveraging its vast proprietary healthcare data to drive precision medicine via AI and ML. TEM delivered 85% YoY revenue growth in Q3 2025, with organic oncology and hereditary testing volumes up 27% and 37%, and achieved positive adjusted EBITDA. The company’s data moat, expanding test portfolio, and software ambitions position it for potential winner-take-all dominance in AI-driven diagnostics. Despite a premium 9.5x 2025 sales multiple and ongoing GAAP losses, management targets 25% annual growth, with profitability expected by 2027. BeritK/iStock via Getty Images The word Tempus comes directly from Latin, where it means 'time, season or occasion.' Thus, Tempus AI, Inc. (NASDAQ:TEM) appropriately describes a healthcare technology company racing against the clock to achieve the promise ofThis article was written byBrendan O'Boyle2.1K FollowersFollowBrendan, a Pennsylvanian by birth:-Completed a Ph.D. at Stanford University in the field of organic synthesis (2009). -Worked for a major pharmaceutical company (Merck, 2009-2013).-Worked in biotech including start-ups (Theravance/Aspira) prior to securing employment at Caltech.-First employee and co-founder of 1200 Pharma as it spun out of Caltech garnering major investment (into the 8 figures).-Remains an avid investor, focused on market trends and especially biotechnology stocks.Analyst’s Disclosure:I/we have a beneficial long position in the shares of TEM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Disclaimer: All investment opportunities carry inherent risk, including potential loss of principle. Carefully consider your investment objectives, level of experience and risk appetite before making any investment. The above discussion is a framework for investors (both long and short), to understand the factors that will move the underlying security’s price. It is not a prediction and should not be considered investment advice. TEM is an aggressive growth stock and inherently a HIGH RISK investment. The author is long shares of TEM and short puts on the stock.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
