Tempus AI Is Skyrocketing Today -- Is the Stock a Buy Right Now?
Investors are having a strong positive reaction to news that the Trump administration is apparently interested in getting a trade deal done with China and lowering tariffs in the not-too-distant future. In addition to buying momentum that's lifting valuations across the broader market, Tempus AI stock is climbing thanks to news that the company has formed a new partnership with AstraZeneca and Pathos AI. The team-up will see the trio of companies working to build an artificial intelligence (AI) model for oncology that can help generate clinical insights, aid in the discovery of new drug targets, and help develop treatments.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Against the backdrop of an 8% decline for the S&P 500, Tempus AI has managed to rocket 48% higher across 2025's trading. As an early, specialized leader in healthcare AI software, the company has plenty of long-term promise -- but its valuation profile also comes with significant risk.
The company's revenue increased 30.4% annually last year to reach $693.4 million, and its 55% gross margin in the period looks promising for a business that could still be in very early scaling stages. On the other hand, the company seemingly has a long way to go before shifting into profitability and recorded a net loss of $705.8 million last year. With a market cap of roughly $8.7 billion, Tempus AI is valued at approximately 12.6 times last year's sales.
The business has huge expansion potential and will likely continue to serve up very strong revenue growth this year, but its heavily forward-looking valuation suggests the stock is probably only a good fit for investors with high risk tolerance. If you're interested in building a position in this AI healthcare software pure play, I would recommend dollar-cost averaging into the stock due to the potential for macroeconomic and geopolitical developments to spur continued volatility for the market in the near term.
Before you buy stock in Tempus Ai, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Tempus Ai wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $606,106!*
Now, it's worth noting Stock Advisor's total average return is 811% — a market-crushing outperformance compared to 153% for the S&P 500. Don't miss out on the latest top 10 list, available when you join .
See the 10 stocks »
*Stock Advisor returns as of April 21, 2025
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends AstraZeneca Plc. The Motley Fool has a disclosure policy.
Tempus AI Is Skyrocketing Today -- Is the Stock a Buy Right Now? was originally published by The Motley Fool
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
23 minutes ago
- Business Insider
M&A News: BlackRock Stock (BLK) Climbs Despite Threats to $22.8B Panama Ports Deal
Shares in asset manager BlackRock (BLK) edged higher today despite likely missing the final deadline for its $22.8 billion Panama Ports deal with CK Hutchison (CKHUF) because of Chinese government fears. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. March Deal According to Reuters, the July 27 deadline for exclusive talks between BlackRock, Mediterranean Shipping Company (MSC) and CK will not be met. The proposed sale includes two ports at either end of the Panama Canal and more than 40 others around the world. BlackRock and MSC reached a preliminary agreement to buy the ports from CK back in March. Earlier this month it was reported that China wanted state-owned shipping giant Cosco to be an equal partner and shareholder in the ports alongside BlackRock and MSC. Indeed, Chinese officials have told BlackRock, MSC and Hutchison that if Cosco is left out of the deal, Beijing would take steps to block Hutchison's proposed sale. The Chinese government, led by President Xi Jinping, below, has also repeatedly expressed concerns about the deal since March. This has included slamming CK for betraying the Chinese people and being 'spineless.' Chinese Concerns It was concerned that the deal could hit China's shipping and trade interests. Its views carry a lot of weight with the parties involved in the deal. That's because BlackRock and Hutchison have business interests in China, and MSC is one of the biggest movers of Chinese products around the world. That's despite APAC not being a huge revenue generator for BlackRock as can be seen below. China's objections have also come amidst a worsening trade spat with the U.S. President Trump has put a lot of political capital into ensuring that U.S. dominance over the Panama Canal is reasserted and would no doubt object to Cosco's involvement. Ballingal Investment Advisors strategist David Blennerhassett said Trump, 'who has a handful of issues already on his plate, would be incandescent.' Jackson Chan, global fixed income senior manager at FSMOne Hong Kong, warned: 'I think at this moment it's not very optimistic that they can directly sell the ports to the consortium,' he said. It is understood however that missing the deadline may not be a death-knell for the deal. It is likely exclusive negotiations will be extended. Is BLK a Good Stock to Buy Now?
Business Insider
23 minutes ago
- Business Insider
TSM, ASML, and LRCX: The 3 Semiconductor Stocks Investors Must Know About
Semiconductor stocks have enjoyed a strong uptick over the past few years as semiconductors are crucial for making some of the market's most exciting themes possible, whether it's generative AI, self-driving cars, or humanoid robots. That said, their importance to these powerful secular trends is now widely appreciated by the market, and therefore many top semiconductor stocks already enjoy fairly elevated valuations. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. However, shares of some of the most essential semiconductor manufacturing and equipment companies, which are crucial to the semiconductor supply chain, still offer a pocket of fairly reasonable valuations within the sector, especially given their indispensable role in the industry. Here, we'll take a look at three top semiconductor equipment and manufacturing stocks — Taiwan Semiconductor Manufacturing (TSM), ASML Holding (ASML), and Lam Research (LRCX) — that should all be on investor watchlists looking for exposure to the growth of these dynamic themes at a reasonable price. Taiwan Semiconductor Manufacturing Co. (TSM) Taiwan Semiconductor is the world's largest chip maker, with a dominant 60% share of the market. It also manufactures many of the world's most advanced semiconductors and enjoys a significant moat, as producing these chips requires considerable technological and engineering expertise and capital investment. Only a small number of companies globally have the capability to manufacture the most cutting-edge semiconductors, and Taiwan Semiconductor is the preeminent player in this segment of the market, boasting an estimated 90% market share of advanced chips. The company counts some of the world's most prominent semiconductor and technology companies as its customers, including Nvidia (NVDA), Advanced Micro Devices (AMD), and Apple (AAPL). Taiwan Semiconductor's unrivaled capabilities and substantial market share within advanced chips are paying off, as the company increased revenue 38.6% during the second quarter, with CFO Wendell Huang reporting that 'Our business in the second quarter was supported by continued robust AI and HPC-related demand.' There is a lot to like about TSMC's strong business model, yet the stock trades at a reasonable valuation of just 24x 2025 earnings estimates, just a slight premium to the broader market as the S&P 500 (SPX) trades for roughly 22x forward earnings estimates. This appears to be an attractive valuation for a company exhibiting Taiwan Semiconductor's revenue growth and a considerable moat. Is TSMC Stock a Buy, Hold, or Sell? Turning to Wall Street, TSMC earns a Strong Buy consensus rating based on six Buys, one Hold, and zero Sell ratings assigned in the past three months. The average TSM stock price target of $267.57 implies 10.75% upside potential. ASML Holding (ASML) Like Taiwan Semiconductor, ASML Holding (ASML) is an integral link within the global semiconductor supply chain. The Netherlands-based company manufactures photolithography machines for chip manufacturers, including TSMC, Samsung, and Intel (INTC). These are highly complex and expensive systems (with price tags of up to $200 million) that use light to etch circuit patterns onto a silicon wafer, a crucial part of the semiconductor manufacturing process. ASML is the only firm currently providing extreme ultraviolet lithography (EUV) machines, which are used to make the most advanced chips, giving ASML a powerful moat. ASML also manufactures deep ultraviolet (DUV) lithography machines, used in the production of older chips, and earns revenue from servicing these EUV and DUV machines for its customers. For these reasons, ASML is arguably one of the most important companies in the world. However, it isn't really priced as such. The stock trades for a reasonable 25x 2025 earnings estimates, just a slight premium to the S&P 500. The stock isn't ultra cheap, but it does carry an appealing valuation that the semiconductor industry is heavily reliant on. ASML is a dividend stock, currently yielding 0.92%. While this isn't a high yield, the company has slowly but surely been growing its dividend over time as its earnings power increases. For example, ASML has increased its dividend payout for nine consecutive years and grown it at an attractive 21.5% compound annual growth rate (CAGR) over the past five years. In addition to the dividend, ASML has also made extensive use of share buybacks to return capital to shareholders. Share buybacks are often beneficial to shareholders, as they reduce the company's share count, thereby increasing earnings per share and concentrating the company's earnings among a smaller pool of investors. They are also often seen as a sign that management believes that the stock is undervalued. Through the first two quarters of 2025, ASML has repurchased approximately 4.6 million shares of the company this year, worth roughly €4.25 billion. Despite its unique capabilities and strong business model (not to mention beating both revenue and earnings estimates), ASML fell sharply after reporting Q2 earnings earlier this month and has yet to recover. The stock is down more than 10% over the past month and 23.5% off of its 52-week high. The recent sell-off was based on the company guiding for lower Q3 revenue than the market expected, and stating it cannot confirm further growth in 2026 due to macroeconomic and geopolitical uncertainty. While the year ahead may indeed pose challenges, we are confident that over the long term, ASML's equipment and services will continue to be in high demand by the world's leading semiconductor manufacturers, making the stock an attractive long-term opportunity to buy on the dip. Is ASML Stock a Buy, Hold, or Sell? ASML earns a Moderate Buy consensus rating based on four Buys, five Holds, and zero Sell ratings assigned in the past three months. The average ASML stock price target of $863.83 implies 19% upside potential over the coming year. Lam Research (LRCX) Finally, let's examine Lam Research (LRCX), a vital player in the global semiconductor supply chain. The company designs advanced equipment for etching, deposition, and cleaning—critical steps in the chip manufacturing process. Like ASML, Lam also generates recurring revenue from servicing its complex and highly specialized machinery. While it faces competition from names like Applied Materials (AMAT) and Tokyo Electron, Lam operates in a niche with high technological barriers to entry, making it an attractive long-term prospect. Lam Research currently trades at around 24x forward earnings—only a modest premium to the broader market, suggesting a reasonable valuation given its position in the semiconductor ecosystem. In terms of shareholder returns, Lam offers a dividend yield of 0.94%. Though the yield is modest, the company has consistently increased its dividend for 10 consecutive years, with a robust 14.9% compound annual growth rate over the past five years. Additionally, Lam is returning capital through share buybacks, highlighted by its $5 billion repurchase program announced in May. Is LRCX Stock a Buy, Sell, or Hold? LRCX earns a Strong Buy consensus rating based on 11 Buys, two Holds, and zero Sell ratings assigned in the past three months. The average LRCX stock price target of $108.75 implies 11.2% upside potential over the coming year. Semiconductor Supply Chain Stocks Offer Long-Term Value I'm bullish on all three of these semiconductor supply chain stocks, as I believe they offer compelling long-term value for investors. Each company plays a critical role in the production of semiconductors that will power transformative technologies such as generative AI, autonomous vehicles, and robotics. Their highly specialized products and services create durable competitive advantages and significant barriers to entry. Yet, despite their strategic importance and strong positioning, all three stocks trade at valuations only modestly above the broader market. Additionally, each company is actively returning capital to shareholders, further enhancing its investment appeal.
Yahoo
31 minutes ago
- Yahoo
Is Linde (LIN) a Safe Bet for Dividend Investors Seeking Industrial Exposure?
Linde plc (NASDAQ:LIN) is included among the Top 10 Safest Dividend Stocks in the UK. A scientist in a lab coat inspecting a cylinder filled with industrial gas. Linde plc (NASDAQ:LIN) has created a range of technologies aimed at efficiently compressing and safely refueling hydrogen, along with solutions that help reduce the carbon footprint of hydrogen through carbon capture and storage methods. In June 2025, Linde plc (NASDAQ:LIN) entered into a long-term deal to provide industrial gases to a low-carbon ammonia plant in Louisiana. The upcoming $400 million on-site facility will enhance Linde's existing hydrogen and syngas network in the area. In the first quarter of 2025, Linde plc (NASDAQ:LIN) reported revenue of $8.1 billion, up 1% from the same period last year. The company generated $2.2 billion in operating cash flow, marking an 11% increase compared to the previous year. After accounting for $1.27 billion in capital expenditures, its free cash flow stood at $891 million. Over the course of the quarter, it returned $1.808 billion to shareholders through dividends and share buybacks, after offsetting any new stock issuances. Linde plc (NASDAQ:LIN) currently offers a quarterly dividend of $1.50 per share, having raised it by 8% in February this year. Through this increase, the company stretched its dividend growth streak to 32 years, which makes it one of the best FTSE dividend stocks. LIN offers a dividend yield of 1.27%, as of July 25. While we acknowledge the potential of LIN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Sign in to access your portfolio
