Tempus AI's Strategic Push to Expand Beyond Oncology

Tempus AI TEM is developing and deploying a suite of advanced algorithms and diagnostic software that run on its multimodal data. These algorithms span beyond oncology, including digital pathology, radiology, cardiology and neuropsych. 

In line with this, it began a collaboration with Northwestern University’s Abrams Center to harness AI for rapid discovery and innovation in Alzheimer’s disease research. The collaboration leverages Tempus’ AI-powered data analytics platform, Lens, to analyze and restructure the center’s repository of genomic data.

Also, in the past few months, the company secured two new FDA 510(k) clearances. First, it received approval for the updated Tempus Pixel, an AI-powered cardiac imaging platform. This update allows the generation of T1 and T2 inline maps, further enhancing the device’s capabilities for cardiac MR image analysis. TEM also received approval for its ECG–Low EF software, which leverages AI to identify patients who may have redAuced left ventricular ejection fraction (LVEF).

Additionally, its strategic acquisitions have further strengthened its footprint in these fields. In 2022, Tempus acquired Arterys, incorporating its AI-powered tools for analyzing imaging data ranging from lung CT scans and chest X-rays to cardiac MRIs into Tempus’ platform. Most recently, Tempus acquired Paige, an AI company specializing in digital pathology, bringing a proprietary dataset of almost 7 million clinically annotated, de-identified pathology slides to accelerate Tempus’ efforts.

Peer Update

GE HealthCare GEHC recently launched its Voluson Performance series, the latest addition to its leading women’s health ultrasound portfolio. The company also entered into an agreement to acquire icometrix, a company focused on providing AI-powered brain imaging analysis for neurological disorders. GE HealthCare expects to integrate the icometrix icobrain platform with its MRI systems for seamless workflow. 

Earlier this year, NANO-X IMAGING LTD NNOX received CE mark certification to market the multi-source Nanox.ARC system, including the Nanox.CLOUD, its accompanying cloud-based infrastructure.  Nanox.ARC is a stationary X-ray system, intended to generate tomographic images of human anatomy from a single tomographic sweep performed in recumbent positions of adult patients. 

TEM’s Stock Price Performance

In the past year, Tempus’ shares have rallied 74% against the industry’s 1.5% decline. The S&P 500 composite has improved 14.5% in the same time.

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Expensive Valuation

TEM currently trades at a forward 12-month Price-to-Sales (P/S) of 8.76X compared with the industry average of 5.77X.

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TEM Stock Estimate Trend

In the past 30 days, Tempus AI's loss per share estimate for 2025 has remained unchanged.

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TEM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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