We just covered Grok’s Latest Stock Portfolio in 2026: Elon Musk’s AI Chatbot’s Top 10 Stock Picks. Lockheed Martin Corporation (NYSE:LMT) ranks #6 (see Grok’s Latest Stock Portfolio in 2026: AI Assistant’s Top 5 Stock Picks).
Number of Hedge Funds: 59
Wars raging around the world, including the Russia-Ukraine war and the conflict in the Middle East, are pushing nations to raise defense spending, benefiting military companies like Lockheed Martin. Nearly all NATO members except Spain have agreed to increase core defense spending to at least 3.5% of GDP by 2035.
Lockheed has one of the strongest defense backlogs in the industry at roughly $186 billion. The company recently disclosed framework agreements tied to several missile programs, including Advanced Patriot missiles, THAAD missile defense systems and Precision Strike Missiles (PrSMs). The F-35 fighter jet program also remains central to the bull case. The U.S. Air Force and Navy plan to increase F-35 purchases over the next five years, with procurement potentially rising from 38 aircraft in fiscal 2027 to 48 aircraft annually by fiscal 2030 and 2031.
Lockheed Martin (NYSE:LMT) makes THAAD missile defense systems, HIMARS (High Mobility Artillery Rocket Systems) launchers and rockets, PAC-3 MSE interceptors, JASSM and LRASM air-launched missiles, F-35 fighter jets, and other precision munitions and platforms. Demand for these systems is increasing due to ongoing conflicts.
Matrix Asset Advisors stated the following regarding Lockheed Martin Corporation (NYSE:LMT) in its third quarter 2025 investor letter:
“Lockheed Martin Corporation (NYSE:LMT) is the largest U.S. defense contractor, supplying advanced military systems to the U.S. Government and allies worldwide. Prior to starting our position, LMT’s stock had underperformed its peer group of defense contractors by a wide margin in 2025 for several reasons. It lost out to Boeing for the next generation of fighter jets and announced an unexpected charge of $1.6 billion on its Aeronautics and Canadian helicopter programs. These charges are a black eye for the company, but we believe LMT’s strong defense programs will (read the full letter here)”
Pixabay/Public Domain
While we acknowledge the risk and potential of LMT as an investment, our conviction lies in the belief that some 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 and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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