Should GE Aerospace’s Unmanned Jet Partnership With Shield AI Matter to General Electric (GE) Investors?

• Shield AI has announced a collaboration with GE Aerospace to provide propulsion technologies, including the F110-GE-129 engine with the advanced Axisymmetric Vectoring Exhaust Nozzle, for Shield AI's new AI-piloted X-BAT vertical take-off and landing fighter jet designed for contested environments.
• This partnership showcases GE Aerospace's established leadership in propulsion development and signals growing industry adoption of AI-powered unmanned combat platforms.
• We'll explore how GE Aerospace's entry into next-generation autonomous defense systems could influence its growth outlook and industry positioning.

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General Electric Investment Narrative Recap

To believe in GE, you must have confidence that aerospace innovation and global defense modernization will continue to fuel demand for next-generation engines and propulsion systems, offsetting GE’s higher earnings volatility after its industrial divestitures. The new Shield AI partnership showcases GE Aerospace’s technology leadership, but its impact on near-term financial catalysts, such as commercial engine demand and sustained shop visit activity, remains limited, while the biggest risk continues to be exposure to cyclical swings in commercial aviation.

Of GE Aerospace’s recent news, the October order of GE9X engines from Cathay Pacific stands out as especially relevant: it strengthens GE’s foothold in widebody commercial aviation, a segment closely tied to the main drivers of revenue and the same area most vulnerable to changes in global air travel demand.

Yet, looking closer, investors should also consider the company’s less diversified base and how sudden shocks to commercial aviation could...

Read the full narrative on General Electric (it's free!)

General Electric's outlook forecasts $50.8 billion in revenue and $9.5 billion in earnings by 2028. Achieving this hinges on a 6.9% annual revenue growth and a $1.9 billion increase in earnings from the current $7.6 billion.

Uncover how General Electric's forecasts yield a $343.57 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Thirteen fair value estimates from the Simply Wall St Community span a wide US$190 to US$343.57 per share. With commercial aviation’s cyclical swings still marking GE’s biggest risk, your own take could significantly influence how you see the company’s outlook.

Explore 13 other fair value estimates on General Electric - why the stock might be worth as much as 12% more than the current price!

Build Your Own General Electric Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your General Electric research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free General Electric research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate General Electric's overall financial health at a glance.

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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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