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 $77.93 as of November 28th. TEM’s trailing P/E was 41.53 according to Yahoo Finance.

Tempus AI, Inc. operates as a healthcare technology company. TEM’s recent performance and outlook have positioned the company as a compelling growth opportunity supported by rising fundamentals and multiple near-term catalysts. Management has guided FY25 revenue to $1.25–$1.26 billion, representing an exceptional 81% year-over-year increase that underscores accelerating commercial adoption across its platform. With expectations for FY26 revenue to reach roughly $1.55 billion, the company is currently valued at 9.16x 2026 sales—an expensive-looking multiple at first glance, but reasonable given the projected 24% growth and the quality of recent execution.

TEM has strengthened investor confidence by raising full-year guidance and securing FDA clearance for its xR IVD product, a milestone that meaningfully expands addressable markets and validates its regulatory and technological progress. The acquisition of Paige for $81 million further enhances its portfolio, bringing differentiated AI pathology capabilities that should deepen its competitive moat and open additional monetization channels. At today’s valuation, TEM appears attractively positioned relative to its growth trajectory.

However, the stock may not pull back to that technical support area given the momentum created by its recent catalysts, unless broader macro pressures drive a market-wide retracement. Taken together, TEM offers a balanced combination of strong revenue visibility, regulatory tailwinds, strategic expansion, and a valuation that is supported by forward growth rather than speculative assumptions. This creates a favorable setup for long-term investors who believe the company can continue compounding through innovation and disciplined execution.

Previously we covered a bullish thesis on Tempus AI, Inc. (TEM) by Oliver | MMMT Wealth in April 2025, which highlighted the company’s undervaluation and strong 35% revenue growth outlook. The company's stock price has appreciated approximately by 80.26% since our coverage. This is because the thesis played out. The thesis still stands as growth remains robust. Oliver | MMMT Wealth shares a similar view but emphasizes recent catalysts.

Tempus AI, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held TEM at the end of the second quarter which was 21 in the previous quarter. While we acknowledge the potential of TEM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.