Is Tempus AI (TEM) The Best AI Healthcare Stock in Cathie Wood’s Portfolio?

<p>Tempus AI (NASDAQ:TEM) is one of the <a href="https://www.insidermonkey.com/blog/cathie-wood-2026-portfolio-10-best-stocks-to-buy-1716175/">Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy</a>.</p>
<p>Tempus AI (NASDAQ:TEM) uses AI to analyze and process large datasets to find patterns that help doctors treat patients more efficiently. ARK increased its stake in Tempus AI (NASDAQ:TEM) by 6% in the fourth quarter to about $446.28 million. Of the 1041 hedge funds tracked by Insider Monkey, 41 had stakes in Tempus AI (NASDAQ:TEM) as of the end of last year, up from 32 funds as of Sept. 30.</p>
<p>Why are hedge funds piling into Tempus AI (NASDAQ:TEM)?</p>
<p>Tempus AI (NASDAQ:TEM) shares are up about 17% over the past year. The company is seeing an increasing demand for its genomic testing and data tools. Its platform is now connected to over 5,000 healthcare providers in the U.S. Last month, Tempus AI (NASDAQ:TEM) posted Q4 results that showed its revenue rose by more than 80% year over year while adjusted EBITDA turned positive. For 2026, its revenue outlook indicates growth of 25%, which was slower than the pace last year but still came in just ahead of Wall Street’s estimates.</p>
<p>While we acknowledge the potential of TEM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the <a href="https://www.insidermonkey.com/blog/three-megatrends-one-overlooked-stock-massive-upside-1548959/">best short-term AI stock</a>.</p>
<p>READ NEXT: <a href="https://www.insidermonkey.com/blog/30-stocks-that-should-double-in-3-years-1518528/">30 Stocks That Should Double in 3 Years</a> and <a href="https://www.insidermonkey.com/blog/11-hidden-ai-stocks-to-buy-right-now-1523411/">11 Hidden AI Stocks to Buy Right Now</a>.</p>
<p>Disclosure: None. <a href="https://news.google.com/publications/CAAqLQgKIidDQklTRndnTWFoTUtFV2x1YzJsa1pYSnRiMjVyWlhrdVkyOXRLQUFQAQ?hl=en-US&amp;gl=US&amp;ceid=US%3Aen">Follow Insider Monkey on Google News</a>.</p>