Cathie Wood’s Health Tech Bet: Why Analysts See Long-Term Upside in Tempus AI (TEM)

TEM

Tempus AI Inc. (NASDAQ:TEM) is among the top 10 stocks to buy from Cathie Wood’s stock portfolio. As of the end of September 2025, Tempus holds the ninth largest position in Cathie Wood’s ARK Investment Management’s 13F portfolio with $579 million (or 3.45% of the portfolio).

On Tuesday, November 25, BTIG’s Mark Massaro reiterated his Buy rating on Tempus AI Inc. (NASDAQ:TEM) and increased the price target from $96 to $105. His decision followed his recent discussions with the company’s management. In his note, the analyst highlighted several long-term growth drivers that underpin the company’s investment case.

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First among them was management’s emphasis on the durability and diversification of Tempus AI Inc.’s (NASDAQ:TEM) data and pharma business. In addition, Ambry Genetics is outperforming the firm’s estimates and is now expected to post over 20% growth, supported by expanding demand in hereditary and rare disease testing.

Another factor, according to Massaro, is Tempus’s advanced algorithm solutions business, which he views as an underappreciated asset. As per his analysis, over time, this segment could deliver gross margins exceeding 80%, further bolstering the company’s growth.

Earlier, on November 11, an analyst at Morgan Stanley had also raised his price target from $68 to $80, while keeping his Buy rating intact.

Tempus AI Inc. (NASDAQ:TEM), which went public on June 14, 2024, is a health technology company. It aims to advance precision medicine through the practical application of artificial intelligence, including generative AI, in healthcare to create intelligent diagnostics.

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. This article is originally published at Insider Monkey.