General Electric (GE): Evaluating Valuation After Major Silicon Carbide Technology Alliance With Axcelis Technologies

If you have been following General Electric (GE) lately, the newly announced joint development program with Axcelis Technologies is hard to ignore. GE Aerospace is making a strategic push into advanced silicon carbide (SiC) technology by co-developing superjunction power devices for high voltage applications. These devices play a crucial role in aerospace, defense, and transformative commercial sectors such as artificial intelligence and quantum computing. This move goes beyond a standard partnership and signals GE’s intent to drive innovation in high-performance power switches, which are central to the CLAWS Hub initiative conducted by North Carolina State University.

This collaboration comes as GE’s shares have posted strong numbers both recently and over the long term. The stock advanced 2.7% over the past day, is up 12% in the past 3 months, and has delivered a 61% gain over the last year, significantly outperforming many peers. Broader momentum has supported GE’s efforts to reposition itself for high-growth, high-value opportunities. These moves are reflected in the company’s ongoing efforts to expand its expertise in SiC and next-generation power technologies.

With this momentum and a new venture into critical technologies, investors may be considering whether GE is positioned for further gains, or if the market has already priced in its current growth path.

Most Popular Narrative: 8.1% Undervalued

According to community narrative, General Electric is viewed as moderately undervalued based on growth forecasts and expectations for improved profitability over the coming years.

Analysts assume General Electric's revenue will grow by 6.9% annually over the next 3 years. They also expect profit margins to increase from 18.2% today to 18.5% in 3 years.

Curious what is fueling this bullish outlook? There is a combination of new engine deployments, digital transformation, and a projected margin lift driving these figures. Are analysts too optimistic, or is there hidden upside in these numbers? The full narrative examines the assumptions that support that higher fair value.

Result: Fair Value of $297.93 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, GE's heavy dependence on commercial aviation and supply chain pressures could hinder expected growth if industry conditions worsen.

Find out about the key risks to this General Electric narrative.

Another View: Looking at Value from a Different Angle

While analyst forecasts and growth assumptions suggest General Electric is undervalued, a glance at the price-to-earnings ratio provides a conflicting perspective. This measure presents the stock as expensive compared to the broader industry.

See what the numbers say about this price — find out in our valuation breakdown.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out General Electric for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own General Electric Narrative

If these perspectives do not align with your own, or if you prefer forming your own conclusions using the available data, you can craft your personal narrative in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding General Electric.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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