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

Group 1 - Tempus AI Inc. (NASDAQ:TEM) is ranked among the top 10 stocks in Cathie Wood's ARK Investment Management portfolio, holding a position worth $579 million, which is 3.45% of the portfolio [1] - BTIG's Mark Massaro has reiterated a Buy rating on Tempus AI and raised the price target from $96 to $105, citing discussions with management and highlighting long-term growth drivers [2] - Management emphasizes the durability and diversification of Tempus's data and pharma business, with Ambry Genetics expected to achieve over 20% growth due to rising demand in hereditary and rare disease testing [3] Group 2 - Massaro identifies Tempus's advanced algorithm solutions business as an underappreciated asset, with potential gross margins exceeding 80%, contributing to the company's growth [4] - Morgan Stanley also raised its price target for Tempus from $68 to $80 while maintaining a Buy rating [4] - Tempus AI, which went public on June 14, 2024, focuses on advancing precision medicine through the application of artificial intelligence in healthcare [5]