GE Aerospace Advances Silicon Carbide Push With Wolfspeed Deal

GE Aerospace (NYSE:GE) shares are trading lower on Monday.

The company announced a collaboration with Wolfspeed, Inc. (NYSE:WOLF) to accelerate the adoption of high-voltage silicon carbide technology across various markets.

• GE Aerospace shares are experiencing downward pressure. What’s pulling GE shares down?

This news comes during a day when major indices are showing positive momentum, with the S&P 500 up 0.80% and the Nasdaq gaining 2.28%, suggesting that GE Aerospace’s decline might be more related to company-specific factors than broader market trends.

Partner On High-Voltage Silicon Carbide

The companies have entered into a Memorandum of Understanding (MOU) aimed at developing high-voltage silicon carbide-based power modules.

The agreement covers the supply of Wolfspeed's 10 kV MOSFET die and joint development of standardized high-voltage power module designs for future commercial deployment.

The collaboration also aligns with U.S. government priorities aimed at accelerating critical technologies and enabling faster deployment of power solutions for strategic sectors such as artificial intelligence.

The company expects to enhance efficiency and reliability in aerospace and defense applications, particularly as GE recently qualified high-voltage power units for U.S. military ground vehicles.

GE Stock Technical Outlook: Key Levels and Momentum

Despite the positive news regarding innovation and collaboration, the stock is moving against a backdrop of a generally strong market, indicating potential concerns specific to GE Aerospace.

Currently, GE Aerospace is trading at $323.50, which is about 5.5% above its 20-day simple moving average (SMA) of $306.40. The stock has shown a solid 12-month performance, up 28.60%, but is facing pressure due to a recent death cross in May, where the 50-day SMA crossed below the 200-day SMA.

Momentum indicators are showing mixed signals; the MACD is above its signal line, indicating that downside pressure is easing, which could suggest a potential for recovery. However, the stock remains in a precarious position, trading 6.9% above the 200-day SMA, which could act as a key support level.

• Key Resistance: $348.50 — Nearby level where rebounds can stall.
• Key Support: $279.50 — Nearby level where buyers previously stepped in.

GE Earnings Preview and Analyst Price Targets

GE Aerospace is slated to provide its next financial update on July 16 (estimated).

• EPS Estimate: $1.85 (Up from $1.66)
• Revenue Estimate: $11.78 Billion (Up from $11.02 Billion)
• Valuation: P/E of 40.7x (Indicates premium valuation)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with a consensus price target of $271.96. Recent analyst moves include:

• Seaport Global: Initiated with Buy (Target $375 on May 27)
• RBC Capital: Outperform (Maintains target to $355 on May 20)
• Morgan Stanley: Overweight (Lowers target to $400 on April 22)

How GE Ranks On Value, Growth, Quality and Momentum

Below is the Benzinga Edge scorecard for GE Aerospace, highlighting its strengths and weaknesses compared to the broader market:

• Value: 3.64 — Stock is trading at a steep premium relative to peers.
• Growth: 41.5 — Moderate growth potential observed.
• Quality: 86.8 — Indicates a strong balance sheet and operational efficiency.
• Momentum: 69.66 — Stock is showing decent momentum, but not exceptionally strong.

The Verdict: GE Aerospace’s Benzinga Edge signal reveals a mixed profile with strong quality metrics but a premium valuation. While the company shows potential for growth, its current momentum and value rankings suggest caution for investors considering entry points.

Top ETF Holding GE Stock and Why It Matters

• Invesco Aerospace & Defense ETF (NYSE:PPA): 7.78% Weight

Significance: Because GE carries such a heavy weight in this fund, any significant inflows or outflows for the ETF will likely trigger automatic buying or selling of the stock.

GE Stock Slides Despite Broader Market Strength

GE Stock Price Activity: GE Aerospace shares were down 1.72% at $322.36 at the time of publication on Monday, according to Benzinga Pro data.

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