Tempus AI Inc - Class A common stock

Tempus AI, Inc. is a healthcare technology company specializing in AI-enabled precision medicine solutions. By leveraging AI and machine learning, Tempus connects laboratory test results with clinical data to improve patient care across multiple diseases. The company operates through three main business units: Genomics, Data and Services, and AI Applications. Tempus collaborates with leading pharmaceutical and biotechnology firms, positioning itself as a key innovator in both oncology and broader healthcare markets. We believe a premium valuation is justified by the company’s leverage to the AI infrastructure buildout and the resulting growth acceleration and margin expansion.

Tempus AI, Inc. is an intelligent diagnostics and health care data company with two synergistic business units: Genomics and Data. Although shares have been volatile since its June 2024 IPO, these fluctuations do not reflect Tempus’ business fundamentals. We expect the company’s Genomics business to continue to grow rapidly as the market develops. The data generated from Tempus’ diagnostic tests enhances its Data business, creating an enormous proprietary multimodal dataset that is unlikely to be replicated. Tempus licenses this dataset to biopharmaceutical companies for smarter clinical trials and drug target identification.

Tempus AI has demonstrated robust growth, gaining 43% following the end of its IPO lockup period. The company operates a next-generation diagnostics platform that integrates artificial intelligence (AI) capabilities to enhance clinical care delivery. Tempus is one of the largest sequencers of cancer patients and is building an intelligent diagnostics platform that allows for personalized therapies. Its extensive multimodal, de-identified database, which is larger than any competitor's, creates a significant economic moat and generates additional revenue through licensing to pharmaceutical companies for therapy development.