We recently published a list of 10 best-performing healthcare stocks in 2025. In this article, we'll look at where Tempus AI, Inc (NASDAQ:TEM) endures other best-performing medical stocks to date in 2025. .
Despite the ongoing epidemic surrounding GLP-1 obesity drugs, the healthcare sector was lager last year. On January 3rd, Mizuho Securities American healthcare sector strategist Jared Holtz appeared on CNBC's “Squawk on the Street” on the 2025 healthcare sector outlook. In 2025, “It was a very bad thing, maybe it's a good thing.”
Holtz further said that the healthcare department will present a disaster as there isn't much simple space in the domain. The verticals of other industries, such as technology and finance, are well set. In contrast, healthcare appears to have some variables in place, but most of them are not positive. However, he believed that the MedTech sector would provide a kind of safety net in such a turbulent sector. According to the hedge fund, in a recently published article on the best medical device stocks, we talked about the US medical device sector and the future. This is an excerpt from the article.
“According to McKinsey, the healthcare industry is expected to continue to undergo changes in growth dynamics. Health Services and Technology (HST) revenue pools are combined annual growth of 8% between 2023 and 2028. It is expected to grow at a rate, and is supported by double-digit growth of the software platform and advanced data and analytics. Sales of innovative technologies such as generation AI to payers and providers will further enhance this growth. We support it.
Speaking about recent trends, including an increase in AI use in the healthcare sector, Holz said the scenario could possibly support software and technology companies more than healthcare companies . The impact on drug development in AI and clinical trials is another important subject of discussion in the health care sector. However, Holtz said the industry has not actually seen the positive impact of AI adoption in the sector. Several clinical trials employing AI have recently failed.
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Therefore, while behind the scenes science and technology appears to be getting better, it does not necessarily lead to better drug development and improved approval rates. He expects that AI use could lead to better outcomes in the future, but Holtz will make the generalization that AI epidemics will lead to better outcomes for Biotech or Pharma, at least in the near future. I think it's too early.
We screened healthcare inventory using Finviz and looked at the performance from the beginning of the year to select the best performance as of February 17, 2025. We also included the number of hedge fund holders for each share as of the third quarter of 2024. Hedge fund sentiment data was sourced from the Insider Monkey database. This list is sorted in ascending order of performances around the year.
Why do we care about what hedge funds do? The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. Quarterly Newsletter's strategy has chosen 14 small and large caps per quarter, returning 275% since May 2014, breaking the benchmark by 150 percentage points (see more here).
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YTD Performance: 164.93%
Number of hedge fund holders: 7
Tempus AI Inc (NASDAQ:TEM) is a healthcare technology company that provides AI and machine learning to healthcare. By adopting technical capabilities, the company offers next-generation diagnostics in a variety of disease areas. We have a product line that leverages analytics and data to personalize medicine and spans data, genomics and AI applications. Tempus AI Inc (NASDAQ:TEM) focuses on building a platform for cardiology, oncology, infectious diseases, neuropsychiatry and radiology.
February 13th, Tempus AI, Inc. (NASDAQ:TEM) announced a partnership with the Institute for Follicular Lymphoma Innovation (IFLI), a non-profit private foundation focused on promoting the development of innovative treatment options for patients with follicular lymphoma. (IFLI) FL). The partnership is a real-world multimodal lens, abandoned FL data library, and Tempus' data analysis platform that allows researchers to derive AI-driven insights and accelerate the development of FL treatments, allowing researchers to derive AI-driven insights and accelerate the development of FL treatments. The aim is to develop targeted therapies. Improve patient outcomes. The development of this follicular lymphoma data library has the potential to broaden our understanding of disease biology.
The company also has a solid business, reporting revenue of $693 million for the full year of 2024, with 30% growth compared to the previous year. Last month, Tempus AI, Inc. (NASDAQ:TEM) has launched the new XT CDX, an in vitro diagnostic device with FDA approved next-generation sequences that are available to all health professionals across the country. XT CDX provides one of the most comprehensive gene panels available and examines 648 genes to identify solid tumors. It also provides important insights to support treatment decisions in colorectal cancer patients.
In its 3Q 2024 investor letter, Baron Discovery Fund said:
“Tempus AI, Inc (NASDAQ: TEM) stock contributed to performance. Tempus is a cancer diagnosis company that provides genomic test results. Tempus is over 200 Petabytes combining clinical patient data and genomic test data. Proprietary Multimodal Datasets are also accumulating. In addition to using this data to enhance more intelligent diagnosis with their own testing, Tempus has licensed this data to biopharmaceutical companies, designing smarter clinical trials, and Identify potential new drug targets. I think this unique dataset is unique with meaningful barriers to input, bringing meaningful value to the R&D of biopharmaceuticals. In the last quarter letter As mentioned, the stock was very unstable. Using this volatility, the stock was 20 per share from an IPO price of $37. I bought a meaningful position when it was sold to the dollar. When the stock surged to the mid-$70s (for short sellers who are covering losses due to the stock rising), we have an extended valuation We now have a profit in the meaningful portion of our investment because we believed it was. (The stocks are currently trading at $40 to a low level of $50). We now love our position sizing. , added to the low rating position. We believe Tempus has grown significantly ahead of it and are excited about its unique business model.”
Overall, TEM ranks number one on the list of healthcare stocks that have performed so far in 2025. Although we acknowledge the potential of TEM, our belief lies in the belief that AI stocks offer higher returns and hold a bigger promise to do so within a shorter time. Frame. If you're looking for AI stocks that are more promising than TEM but are trading at less than five times the revenue, check out our report on the cheapest AI stocks.
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Disclosure: None. This article was originally published on Insider Monkey.
