One of the season’s most highly anticipated initial public offerings (IPOs) is taking place today. Tempus AI (NASDAQ:TEM), a company bringing artificial intelligence (AI) to the data processing space, begins trading today after weeks of anticipation. This new stock will trade on the Nasdaq under the symbol TEM. As the AI gold rush continues to spur growth for companies across multiple sectors, more companies are opting to go public. In the current economic climate, having AI in your title is definitely a benefit. This bodes well for TEM stock, as it can offer investors exposure to multiple high-growth sectors. As hedge fund Renaissance Capital summarizes:
“Tempus [] generates revenue from data and services, licensing libraries of clinical, molecular, and imaging data along with a suite of analytic and compute tools to pharmaceutical and biotech companies, in addition to data and services used in clinical trials. The company believes that its proprietary software, network of healthcare institutions and data connections, and expansive libraries of clinical and molecular data position it well for AI advancements in healthcare, while it is also developing its own AI applications.”
If that is true, Tempus AI will be in an excellent position to continue rising as investors rush to snap up new AI stocks. But what sets TEM stock apart from the many other AI startups vying for Wall Street’s attention? Let’s take a look at this company and assess what investors need to know.
TEM Stock: What to Know
- As InvestorPlace‘s William White reports, the TEM stock IPO has been in development for several years.
- The company has valued itself at roughly $6 billion, pricing TEM stock at $35-37 per share. This puts it at the higher end of the intended range.
- As of this writing, Tempus AI has raised $410.7 million through the TEM stock IPO after selling 11.1 million shares priced at $37.
- Eric Lefkofsky, Tempus’ founder and CEO, has been leading its management team since the company’s founding in 2015. Prior to that, he founded Groupon (NASDAQ:GRPN) and served as its CEO.
- Lefkofsky is one of Tempus’ largest shareholders. According to Bloomberg, “The company has a dual-class share structure that will give [him] 65% of the shareholder voting power after the IPO.”
- In addition, Tempus AI is backed by multiple prominent firms, including Japanese conglomerate SoftBank Group (OTCMKTS:SFTBY).
- Tempus began its operations in the oncology space. Since then, it has expanded into other key medical areas, such as neuropsychiatry, radiology and cardiology as well as some infectious diseases.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
