Why Tempus AI (TEM) Is Skyrocketing Now

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We recently compiled a list of the Why These 15 Stocks Are Skyrocketing in 2025. In this article, we are going to take a look at where Tempus AI (NASDAQ:TEM) stands against the other stocks.

Stock gains always get people talking, and 2025 is no exception. Markets have moved higher for a while due to a shift toward tech innovation. The pace might slow after two years of significant returns, but investors have regained their confidence after the Stargate project was announced.

Small and mid-sized companies have started to pick up pace recently and are landing on investors’ radars as mega-cap stocks are now trading at nosebleed valuations. These companies have higher growth potential than their mega-cap rivals, and that explains the sudden surge of interest.

Smaller and mid-tier stocks did face challenges in prior years when corrections and interest rate hikes weighed on market sentiment. However, now that inflation seems more contained and Trump pushes for more rate cuts, things look even better for these mid-sized stocks.

Methodology

For this article, I screened the top-performing stocks year-to-date in the $5 billion to $20 billion market capitalization bracket. Stocks that I have covered recently will be excluded from this list.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).

A patient viewing their medical diagnosis on a digital healthcare ecosystem.

Tempus AI (NASDAQ:TEM)

Number of Hedge Fund Holders In Q3 2024: 7

Tempus AI (NASDAQ:TEM) is a healthcare company that uses AI for sequencing tests and has a data platform.

It has jumped significantly so far in 2025, mostly due to Nancy Pelosi disclosing that she bought 50 call options here at a $20 strike price. The company also has a concierge app called Olivia. Many now think that the AI theme is spilling into healthcare, especially as it was mentioned a lot during the Stargate announcement.

Tempus’ latest preliminary financials for 2024 showed $693 million in annual revenue, up 30% year-over-year. It also reached $200 million in Q4 revenue. Genomics was up 30% in Q4, plus data and services revenue grew 45%. That said, there was some softness in the contract research organization work.