International Business Machines Corporation IBM has entered a strategic partnership with Lockheed Martin, a global leader in defense technology. Lockheed Martin has opted to integrate IBM's high-performance, enterprise-grade, cost-efficient Granite large language models to expedite AI-driven innovation in aerospace and defense applications. In the face of a rapidly changing and multifaceted global security environment, advanced AI is gaining prominence in modern military applications. The use of AI-powered applications in areas such as intelligence, surveillance, reconnaissance and autonomous systems such as drones and UAVs can significantly improve operational efficiency and improve decision making.
However, the use of AI in defense applications comes with distinct challenges that, if ignored, can have a far-reaching negative impact. AI models depend on a large pool of information and the use of biased data sets can lead to inaccurate outcomes and hinder decision making. Without a proper cyber defense mechanism enforced, AI models are very vulnerable to malicious activities. To address these concerns, Lockheed Martin has aligned its AI strategy with the U.S. Defense Department's AI principles. These principles emphasize being Responsible, Equitable, Traceable, Reliable and Governable in the development and implementation of AI technologies.
By combining the power of IBM's Granite AI models with its AI factory tools, Lockheed Martin aims to set a new benchmark in AI innovation for aerospace and defense domains. Granite LLMs are open-sourced, enterprise-ready AI models easily customizable for a wide range of complex tasks. Through these collaborations, Lockheed Martin's developers and engineers will gain access to cutting-edge coding, language and advanced reasoning capabilities. This will boost Lockheed Martin's ability to develop industry-leading AI products for national security missions.
Will This Collaboration Boost IBM's Share Performance?
The security environment worldwide is getting more complex each day. The use of AI is becoming more prevalent in modern defense strategies. Recognizing this, IBM has been steadily advancing its AI portfolio to capitalize on this emerging market trend. This bodes well for long-term growth.
IBM currently carries a Zacks Rank #3 (Hold).
Keysight Technologies, Inc. KEYS carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
In the last reported quarter, it delivered an earnings surprise of 5.10%. Keysight is expected to benefit from the growing proliferation of electronic content in vehicles, momentum in space and satellite applications, and rising adoption of driver-assistance systems globally.
InterDigital IDCC sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 114.47%.
It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.
Plexus Corp. PLXS flaunts a Zacks Rank of 1 at present. It is a leading electronic contract manufacturing services provider to original equipment manufacturers in a wide range of industries. In the last reported quarter, PLXS delivered an earnings surprise of 20.92%.
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With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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