Tempus AI, Inc. (NASDAQ:TEM) is one of the best digital health stocks to buy now.
Wall Street sentiment toward Tempus AI strengthened on November 5, 2025, following the company’s Q3 results, with three major firms reiterating positive ratings and updating their targets. Canaccord Genuity kept its Buy rating but trimmed its target slightly from $110 to $95.
In its commentary, Canaccord noted that “AI deployment at scale in clinical practice could drive strong long-term revenue growth for Tempus AI.”
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Tempus’ blowout Q3 wasn’t magic; it was mix and scale. The Ambry-boosted genomics engine did the heavy lifting, with oncology test volumes up ~27% and hereditary testing surging, pushing total genomics revenue to ~$253M and overall sales to $334M. Data/Services grew too, with Insights licensing leading there, so fixed costs spread wider, lifting gross profit to ~$210M and tipping adjusted EBITDA positive. Yet GAAP stayed red thanks to stock comp, new Ambry amortization, and a $12M debt-extinguishment hit. Management raised the full-year bar because these growth levers look durable; the market’s wobble was about costs and future spend, not demand.
Tempus AI, Inc. (NASDAQ:TEM) is a health-tech company that applies artificial intelligence to clinical and molecular data, aiming to personalize treatment, especially in oncology, and extend its technology across a wider range of diseases.
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.
