Lockheed Martin Corporation (LMT): Leveraging AI for Aerospace and Defense Innovations

We recently published a list of Top 10 AI Stocks That Are Being Monitored By Wall Street. In this article, we are going to take a look at where Lockheed Martin Corporation (NYSE:LMT) stands against other top AI stocks that are being monitored by Wall Street.

As the global tech sector was catching up to the disruption caused by DeepSeek’s r1 AI model, Chinese e-commerce giant Alibaba announced its brand new Qwen 2.5 AI model on the first day of the Lunar New Year. The Qwen 2.5 is pre-trained on large-scale multilingual and multimodal data and rivals DeepSeek’s AI model.

“Qwen 2.5-Max outperforms … almost across the board GPT-4o, DeepSeek-V3 and Llama-3.1-405B,” the group’s cloud unit on its official WeChat account.

The latest Chinese AI model release also sent US firms scrambling to innovate and stay ahead of the competition. OpenAI CEO Sam Altman recently teased several “exciting new features” coming to ChatGPT and a new ChatGPT Gov tool to bolster ties with the US government.

The rise of advanced, cost-effective Chinese AI models has introduced volatility in US stocks as analysts rampantly rerate companies and shift outlooks based on the rapidly evolving tech landscape.

We selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Lockheed Martin Corp. (LMT): Leveraging AI for Aerospace and Defense Innovations

A military aircraft in flight, showing the strength of the company’s combat & air mobility capability.

Lockheed Martin Corporation (NYSE:LMT)

Number of Hedge Fund Holders: 58

Lockheed Martin Corporation (NYSE:LMT) is a leading aerospace and defense company that develops military aircraft, satellite platforms, ground control software, and launch vehicles for crewed spacecraft. The company has several AI and ML-based initiatives like the LMText Navigator, T-Tauri platform, and the Astris AI subsidiary to rapidly process large datasets from space, air, and ground sensors, monitor spacecraft telemetry, connect disperse teams via 5G communications, and integrate AI solutions in the US defense industrial base.

On January 29th, TD Cowen reduced Lockheed Martin’s (NYSE:LMT) stock price target to $520 from $540 but maintained a “Buy” rating. The brokerage said it views Q4 as a clean-up period that sets up an improved 2025 margin/FCF optics, but margin pressures will persist this year at Aero/MFC as zero margin programs ramp.

Overall, LMT ranks 6th on our list of top AI stocks that are being monitored by Wall Street. While we acknowledge the potential of LMT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.