TEM Should I Buy
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Tempus AI Inc (TEM) is not a strong buy right now for a beginner investor with a long-term strategy. While the company shows strong revenue growth and hedge funds are increasing their positions, the technical indicators are bearish, and the stock is trading below key support levels. Additionally, analysts have been lowering price targets, and there is no significant positive catalyst in the short term. The options data also suggests a neutral sentiment. For a long-term investor, it may be prudent to wait for a better entry point or clearer signs of a reversal in the stock's trend.
The technical indicators are bearish. The MACD histogram is negative and expanding downward, the RSI is neutral at 24.325, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading below its pivot level of 55.994, with key support at 50.677. The stock has a 60% chance of declining by 6.81% over the next month.
Hedge funds are significantly increasing their positions, with an 884.13% increase in buying over the last quarter. The company has strong revenue growth, with an 84.72% YoY increase in Q3 2025.
Analysts have been lowering price targets over the past few months, and the stock is trading below key support levels. The MACD and moving averages indicate a bearish trend, and the stock has a high probability of further decline in the short term. There is no recent congress trading data or significant insider activity.
In Q3 2025, Tempus AI reported an 84.72% YoY increase in revenue to $334.2M. However, net income remains negative at -$79.98M, though it improved by 5.46% YoY. EPS remains negative at -0.46, unchanged YoY. Gross margin improved to 62.82%, up 7.38% YoY.
Analysts have recently lowered price targets, with most targets now in the $76-$80 range. Ratings are mixed, with some analysts maintaining a Buy rating while others remain Neutral. Analysts expect the sector to normalize in 2026, with potential upside from biopharma spending resuming.
