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Lockheed Martin Corporation LMT recently launched Astris AI, a new subsidiary created to help U.S. defense industrial base and commercial industry sectors that have high assurance requirements use Artificial Intelligence (AI) in their operations in a simple and secure way.
More on Astris AI
Astris AI will focus on delivering reliable and secure AI/ machine learning (ML) solutions to help organizations manage the challenges of developing advanced technologies. Its offerings will include Lockheed’s proven AI Factory Machine Learning Operations (MLOps) and generative AI software platforms with robust security features. These platforms are designed to be adaptable, cost-efficient and resilient.
In addition to its advanced platforms, Astris AI will also provide end-to-end AI consulting services, including MLOps and generative AI strategy, implementation, training and scaled model development and deployment. By using Lockheed’s team of AI engineers, Astris AI makes it easier for companies to handle the challenges of AI technology, even when there is a global shortage of AI specialists. Astris AI aims to support industries to adapt to the rapidly evolving technology landscape.
Importance of AI
The AI market is increasing rapidly due to technologies like ML and computer vision changing how industries work. The increasing use of digital tools has created a demand for AI to process large data efficiently and deliver accurate predictions. With more data being created by technologies like the Internet of Things (IoT) and 5G, AI is becoming even more important. In the defense sector, AI is playing a crucial role in enhancing security, enabling autonomous systems and improving decision-making in critical situations. Its ability to process vast amounts of information quickly and provide actionable insights is driving its adoption across industries.
This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of more than 31.2% for the global AI market during the 2024-2029 time period.
Other defense companies that are likely to enjoy the perks of the expanding AI market are discussed below.
Northrop Grumman Corporation NOC: It has recently introduced a new AI-powered feature in its Forward Area Air Defense Advanced Battle Manager system. This upgrade is designed to help military personnel make quick and informed decisions during missions, especially when dealing with complex threats like swarms of unmanned aerial systems.
Northrop has a long-term (three to five years) earnings growth rate of 19.1%. The Zacks Consensus Estimate for NOC’s 2024 sales indicates year-over-year growth of 5.3%.
RTX Corporation RTX: Its unit Raytheon has recently secured a contract for two important initiatives by the Department of the Navy to help develop operational AI for defense platforms. These projects are part of the Mentor-Protégé Agreement program, which supports small businesses working with the Department of Defense.
RTX has a long-term earnings growth rate of 10.2%. The Zacks Consensus Estimate for RTX’s 2024 sales indicates year-over-year growth of 7.2%.
AeroVironment, Inc. AVAV: It is expanding its AI capabilities through strategic acquisitions. The company recently announced an all-stock deal to acquire defense technology startup BlueHalo for approximately $4.1 billion, aiming to diversify its portfolio with Space Technologies, Counter-Uncrewed Aircraft Systems (cUAS), Directed Energy, Electronic Warfare, Cyber and AI.
The Zacks Consensus Estimate for AVAV’s 2024 sales indicates year-over-year growth of 13.2%. The consensus estimate for 2024 earnings per share indicates year-over-year growth of 13%.