The new Memorandum of Understanding between General Electric (GE) and Wolfspeed to co develop high voltage silicon carbide power modules positions GE at the center of the push for AI ready aerospace, industrial and defense systems.

Recent news around strong Q1 2026 results, raised guidance, and new engine and propulsion orders sits alongside a 1 month share price return of 8.38% and a 1 year total shareholder return of 28.77%, suggesting that momentum has been building over a multi year period.

If this shift toward AI ready aerospace systems has your attention, it may be a good moment to scan other enablers of the trend using our 48 AI infrastructure stocks

With GE stock up 28.77% over the past year and trading at US$322.04 against an average analyst target of US$350.95, you have to ask: is there still real upside here, or is the market already pricing in years of future growth?

Most Popular Narrative: 8.1% Undervalued

At $322.04, the most followed narrative sets GE's fair value at $350.45, putting the stock below that reference point and centering attention on future cash generation.

Digitalization and AI integration across MRO and inspection processes (such as AI-enabled Blade Inspection Tools and enhanced digital twins) are increasing operational efficiency, reducing turn times by up to 50%, and enabling predictive maintenance, supporting higher aftermarket services revenue and margin expansion.

Curious what kind of revenue runway, margin lift and earnings multiple are built into that story? The core blueprint mixes measured growth, rising profitability and a richer valuation on future profits.

Result: Fair Value of $350.45 (UNDERVALUED)

However, this story can shift quickly if commercial air travel softens, or if supply chain and inflation pressures squeeze margins and delay engine program execution.

Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page.

Another View: Cash Flows Paint A Tougher Picture

While the popular narrative points to an 8.1% upside from a fair value of $350.45, the SWS DCF model is more cautious and puts General Electric's future cash flow value at $246.62. That suggests the current $322.04 price sits well above this estimate and raises the question of which story you trust more.

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 47 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If this mix of optimism and concern around GE has you thinking, do not wait too long to check the details and form your own view with the 3 key rewards and 1 important warning sign.

Looking for more investment ideas?

If GE has sharpened your interest, do not stop here. Broaden your watchlist now and give yourself more options before the next big move.

• Hunt for mispriced opportunities by scanning the 47 high quality undervalued stocks that combine quality fundamentals with discounted valuations.
• Strengthen your income stream by checking out the 10 dividend fortresses that focus on higher yielding, income focused stocks.
• Prioritise resilience by reviewing the 63 resilient stocks with low risk scores designed to spotlight companies with lower risk scores and sturdier profiles.

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.