TEM Stock: Should I Invest at $65 According to Tempus AI?
Tempus AI, a leading company in the field of artificial intelligence (AI) for precision medicine, has been making waves in the industry. The company's recent financial performance and market valuation have been subject to much discussion.
As of the second quarter of 2025, Tempus AI boasts a market capitalization of approximately $12.8 billion, a figure that nearly doubled year-over-year. The company's revenue for the same period stood at about $314.6 million.
In comparison, the S&P 500 index, a broad market index representing the largest 500 U.S. companies, has a total market capitalization that is roughly on the order of tens of trillions of dollars (typically around $40 to $50 trillion in recent years). Thus, Tempus AI's valuation is a very small fraction of the total S&P 500 valuation but is notable for a single company, especially in biotech AI.
Tempus AI’s valuation reflects high growth expectations in AI-powered precision medicine, whereas the S&P 500 reflects the overall market capitalization of large U.S. companies across all sectors.
| Metric | Tempus AI (Q2 2025) | S&P 500 (approximate) | |----------------------|---------------------------|-----------------------------| | Market Capitalization | $12.8 billion | ~$40–50 trillion | | Revenue (Recent) | $314.6 million (Q2 2025) | Aggregate revenue varies, in trillions annually |
Tempus AI is a mid-sized company by comparison but is growing very rapidly in a specialized sector, which contrasts with the diversified and much larger scale of the S&P 500 index.
The company's stock has been on an upward trajectory, with a 10% increase over the past week and an almost 80% rise this year. Tempus AI's revenues have increased significantly in recent years, growing at an average rate of 53.6% over the past 3 years. The company is predicting an 82% year-over-year increase in sales, amounting to approximately $126 million.
Despite lower profit margins compared to most companies in the Trefis coverage universe, Tempus AI exhibits strong operational performance and financial health across four key metrics: Growth, Profitability, Financial Stability, and Downturn Resilience.
In the latest quarter, Tempus AI's quarterly revenues grew 89.6% to $315 million from $166 million a year earlier. Our analysis indicates that Tempus AI is a compelling investment at its present price of approximately $65.
The rapid growth and promising future of Tempus AI in the AI-powered precision medicine sector make it an exciting company to watch.
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