Tempus AI, Inc. (NASDAQ:TEM) is one of the The best digital health stocks to buy now.
Wall Street sentiment toward Tempus AI strengthened on Nov. 5, 2025, following the company’s third-quarter results, with three major companies reiterating positive ratings and updating their targets. Canaccord Genuity maintained its Buy rating, but slightly cut its target from $110 to $95.
In his comment, Canaccord noted that “implementing AI at scale in clinical practice could drive strong long-term revenue growth for Tempus AI.”
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Tempus’ third-quarter explosion wasn’t magical; It was mixing and scaling. The Ambry-powered genomics engine did the heavy lifting, with oncology testing volumes increasing ~27% and hereditary testing increasing, bringing total genomics revenue to ~$253 million and overall sales to $334 million. Data/Services also grew, with Insights licenses leading the way, so fixed costs spread further, lifting gross profit to ~$210 million and turning adjusted EBITDA positive. However, GAAP remained in the red thanks to stock compensation, Ambry’s new writedown, and a $12 million debt payoff hit. Management raised the bar for the full year because these growth levers appear durable; The market swing was due to costs and future spending, not demand.
Tempus AI, Inc. (NASDAQ:TEM) is a healthcare technology company that applies artificial intelligence to clinical and molecular data, with the goal of personalizing treatment, especially in oncology, and expanding its technology to a broader range of diseases.
While we recognize the potential of TEM as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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