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Tempus AI (NASDAQ: TEM): The NVIDIA of Precision Medicine

Key Points

  • Tempus AI (TEM) was founded after CEO Eric Lefkofsky’s wife’s cancer diagnosis, driving a mission to personalize oncology with AI.
  • The company built the largest clinical dataset in oncology, partnered with 95% of the top 20 oncology pharma companies.
  • Rapid growth since IPO, with expanding FDA approvals and big-pharma partnerships (AstraZeneca, GSK, Boehringer).
  • Selected by ARPA-H for the national ADAPT program to transform metastatic cancer treatment.
  • CleaRank analysts call Tempus the “NVIDIA of precision medicine” due to its data moat and AI-driven platform.
  • CleaRank 4-year forecast: $360–$450 (base case) and $500–$650+ (bull case).
  • Key risks: regulatory delays, high cash burn, data/privacy constraints, and strong competition.

Tempus AI, Inc (NASDAQ: TEM) is a rare combination of a company with major growth potential in an exploding AI sector and a deep personal backstory. We’ll start with the backstory as there’s no better investment than backing what you truly believe in, or finding your so-called “investment purpose” beyond the obvious dollar and cents part of the trade. 

Eric Lefkovsky, the CEO and founder of Tempus AI, founded the company in 2015 after searching for a way to save his wife who was diagnosed with breast cancer. He realized that the biggest problem in oncology isn’t a lack of drugs but it’s the lack of personalization. Every tumor behaves differently, and every patient responds differently to the treatment. Two patients might receive the same treatment but the outcomes will vary greatly. 

Instead of accepting his wife’s fate, Eric gathered some of the world’s top AI experts and built a platform that connects doctors, computational biology, and decision-making systems to create personalized treatment for every patient.

Growth Explosion & Clinical Data Control

In July 2024, the company went public at a price of $37 per share, and since then it hasn’t stopped its meteoric rise. The explosive growth spurt can be attributed to the continuous and rapid fire announcements of partnerships and FDA approvals. Some of those partners include big pharma such as AstraZeneca and GSK (GlaxoSmithKline)

The real reason why we’re excited about Tempus AI is that they’ve built the largest clinical data library in the world, complete with medical data and operating systems that allow doctors to make decisions and provide personalized treatment to patients. Their algorithms can match precise treatments to each tumor and its unique dynamics. The company’s platform is currently leveraged by 95% of the top 20 pharmaceutical oncology companies. 

Think of this data library as the GPU of healthcare. Just as NVIDIA provides the essential infrastructure for computing, Tempus provides the essential data infrastructure required to develop modern drugs. They’re on the fast track to change the face of the entire medical industry as long AI maintains its rapid growth trajectory. 

The financial data confirms the ‘breakout’ thesis. Tempus is projected to nearly double its revenue in 2025 while simultaneously crossing the threshold into profitability which is a classic ‘J-Curve’ trajectory seen in successful platform stocks.

CleaRank

Tempus AI Financial Performance

Annual revenue growth and path to profitability (Adjusted EBITDA).

Year Annual Revenue YoY Growth Adj. EBITDA
2023 $531.8M 66% $(133.3)M
2024 $693.4M 30.4% $(104.7)M
2025 (Guidance) ~$1,240.0M ~79% +$5.0M

Key Pivot: 2025 Guidance suggests a pivotal year for Tempus AI, with near-doubling revenue growth (~79%) and the first positive Adjusted EBITDA milestone.

Historic Collaboration with the U.S. government

Undoubtedly the most pivotal announcement thus far for Tempus AI was its selection to provide services and data infrastructure for ARPA-H, the advanced research agency of the U.S. Department of Health and Human Services. The program is called ADAPT, and its goal is to revolutionize cancer treatment by developing therapeutic strategies that use biological markers (biomarkers) to target metastatic disease at its earliest stages.

The program is currently focused on lung cancer, breast cancer, and colorectal cancer, and its ultimate goal is to improve patient survival rates. Tumors evolve during treatment and develop resistance. This makes it difficult for doctors to determine the next step of therapy, and the ADAPT program is designed to tackle exactly this challenge.

Tempus plays a central role in the program. It uses its AI-based diagnostic platform, manages the clinical trials, and leverages its expertise in data collection and research analysis. Tempus will accelerate the development of personalized treatments that respond in real time to tumor evolution.

The Case for Tempus AI: Massive Upside, Real Risks

It’s not just Jacob Bakshi that is excited about Tempus AI. The overwhelming consensus among the CleaRank analysts is that they’re on the fast track to become part of one of the major tech giants or to be acquired by one.

The reasons for their optimism are hard to dispute:

  • Data no one else in the world has. It’s the biggest and most accurate medical database.
  • Massive government and enterprise partnerships
  • A stream of continuous FDA approvals
  • Explosive growth in the digital health market
  • Strong leadership and top-tier institutional investors
CleaRank

The World's Largest Precision Medicine Library

Tempus AI has aggregated one of the largest multimodal medical datasets on Earth.

Total Data Volume
>350 Petabytes
Massive scale multimodal data infrastructure
Pharma Network
19 of Top 20
95% Market Penetration among major oncology pharma
Verified Source
Tempus Investor Relations
Latest public disclosure

Record Volume Breakdown

* Note: Chart uses a logarithmic scale due to the massive difference in volume between total records and sub-categories.

Tempus is one of the most ambitious AI-health platforms in the world, but with that ambition comes high execution risk. 

Jacob Bakshi, weighed in on the risk side:

Before we lead in with our price prediction for TEM, it's important to fully digest the risks:

  • Regulatory Dependence:
    Heavy reliance on FDA approvals and evolving rules around AI in healthcare, so any delay or policy shift can slow growth.
  • Data & Privacy Risk:
    Their obvious advantage is data. Stricter privacy laws or reduced hospital data-sharing could weaken their moat.
  • High Cash Burn:
    AI + sequencing + clinical trials are extremely expensive. If growth slows, dilution or funding risk increases.
  • Strong Competition:
    Competes with massive players like Roche, Illumina, Exact Sciences, and Big Tech entering health AI.
  • Adoption Challenges:
    Hospitals and doctors adopt new tech slowly; reimbursement and workflow barriers can limit real-world usage.
  • Dependence on Partnerships:
    Pharma, hospitals, and government programs fuel their model. Losing major partners would hurt growth.
  • AI Liability & Trust:
    If an AI recommendation is wrong, then their reputational damage could be severe even if they’re exempt from legal responsibility.
  • Valuation Risk:
    The stock is priced for high growth so any slowdown could lead to sharp downside.

Tempus AI Inc. (TEM) Price Prediction Based on CleaRank 4-Year Model

Based on:

  • 80–120% YoY revenue growth momentum
  • ARPA-H (U.S. Health Dept.) multi-year integration
  • FDA approvals + expanded diagnostics portfolio
  • Fastest-growing precision-medicine dataset in the world
  • Data network linked to 95% of top oncology pharma powering real-time treatment decisions.
  • Pharma partnerships (AstraZeneca, Boehringer, GSK, etc.)
  • Shift from low-margin testing to high-margin AI decision engines
  • TempusOS adoption across hospital systems
  • Massive AI tailwind in healthcare through 2030
CleaRank

Tempus AI ($TEM) Price Target Forecast

4-Year projection scenarios (2025–2029) across Bear, Base, and Bull cases.

Bear Case CAGR
+11% to +15%
Conservative Estimate
Base Case CAGR
+26% to +30%
Core Growth Trajectory
Bull Case CAGR
+35% to +42%
Accelerated Adoption
Year Bear Case Target Base Case Target Bull Case Target
2025 $95 – $110 $130 – $150 $170 – $190
2026 $120 – $140 $180 – $220 $260 – $300
2027 $140 – $170 $230 – $300 $330 – $420
2028 $160 – $200 $300 – $380 $420 – $520+
2029 (Stretch) $180 – $230 $360 – $450 $500 – $650+

Scenario Reasoning

Bear Case: “Execution Drag”

  • AI regulation slows adoption
  • FDA timelines slip
  • Hospital onboarding slower than projected
  • Revenue growth moderates to ~20%
  • Data-sharing rules tighten

Outcome: TEM grows, but not exponentially. While still a significant multiple from its IPO price, it underperforms the broader AI sector expectations. Stock reaches $160–$230 by 2029.

Base Case: “Precision OS Takes Hold”

  • TempusOS adopted broadly in major hospital systems
  • ARPA-H, pharma collaborations ramp steadily
  • AI-based diagnostics gain reimbursement approval
  • Revenue grows 40–60% annually

Outcome: TEM becomes the default precision-medicine engine. Stock reaches $360–$450 by 2029.

Bull Case : “Precision Medicine Leader”

  • Tempus becomes the dominant data platform in oncology
  • Pharma uses Tempus as the core AI engine for drug development
  • Multimodal dataset becomes irreplaceable
  • FDA approvals accelerate; margins expand massively
  • Revenue compounds >70% annually as AI workflow tools scale

Outcome: TEM becomes a medical-AI titan. Stock hits $500–$650+ by 2029.

FAQ

Tempus uses AI and the largest oncology dataset in the world to deliver personalized cancer diagnostics, treatment decisions, and clinical trial insights.

CEO Eric Lefkofsky created the company after his wife’s cancer diagnosis, aiming to solve oncology’s biggest gap: lack of personalized treatment.

Because it’s building the core data + AI infrastructure powering precision medicine, similar to how NVIDIA powers AI computing.

A massive multimodal dataset, partnerships with 95% of top oncology pharma, strong FDA momentum, and deep pharma and government partnerships.

A U.S. ARPA-H initiative using biomarkers to target metastatic cancer early — Tempus was chosen to supply data, diagnostics, and AI infrastructure.

Not yet. It’s in high-growth mode with heavy investment in AI, data, and clinical platforms.

Regulatory delays, high cash burn, data/privacy constraints, slow hospital adoption, and strong competition from both biotech and Big Tech.

Base case: $360–$450 in 4 years.
Bull case: $500–$650+ if Tempus becomes the dominant precision-medicine platform.

Disclaimer & Investment Risk The content provided in this article, including the CleaRank price forecasts and analysis of Tempus AI (TEM), is for informational and educational purposes only and should not be construed as professional financial advice, investment recommendations, or an offer to buy or sell any securities. The "Base Case" and "Bull Case" scenarios are hypothetical projections based on current market data and assumptions that may not materialize.

Investing in high-growth sectors like Artificial Intelligence and Precision Medicine involves a high degree of risk, including the potential loss of principal. Stock prices can be highly volatile. "CleaRank" and its analysts are not registered investment advisors. Readers are strongly encouraged to conduct their own due diligence and consult with a certified financial planner or tax professional before making any investment decisions. The author or CleaRank may hold positions in the securities mentioned.

Kate Leaman White Background
Kate Leaman White Background

Kate Leaman

Author of this article

Kate Leaman is a seasoned financial analyst and writer with over a decade of experience covering global markets, trading strategies, and macroeconomic trends. She has written for a variety of well-known brokers and has been featured in Forbes, Yahoo Finance, Sky News, The Motley Fool, MSN and Investing.com.

Kate provides expert commentary on forex, equities, and commodities, blending analytical precision with accessible storytelling. Her work bridges institutional research and retail investor education, helping readers navigate market volatility and understand the forces shaping investor sentiment.

Recognised for her clear insights and grounded approach, Kate brings a sharp, data-driven perspective to everything from central bank policy to emerging trends in the global economy.