Summary

• TEM is a data-rich platform that recently clinched a $200 million deal with AstraZeneca. TEM’s main bet is now on AI for healthcare applications.
• I believe TEM’s main business moat is its vast and rapidly growing data, which can be leveraged for AI. This is how TEM has sustained its impressive revenue growth.
• For example, it's integrating Ambry and Deep 6 to expand hereditary testing and add millions of records to its dataset. This strengthens Tempus AI’s use cases.
• I do have some cash burn concerns, and I believe uncertainty in general could weigh down the stock price in the near term.
• However, I think that the aggregate evidence remains favorable to the bull case on TEM. This is why I reiterate my “Buy” on dips stance on the stock.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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