GE Aerospace (GE) and Wolfspeed (WOLF) Stock: A Defense Tech Partnership to Watch

TLDR

• GE Aerospace and Wolfspeed signed an MOU to jointly develop high-voltage silicon carbide (SiC) technology for aerospace, defense, and industrial markets.
• The deal covers development of standard high-voltage SiC-based power modules and includes supply of Wolfspeed’s 10 kV MOSFET die.
• Higher-voltage modules will reduce system complexity by requiring fewer series-connected devices, making solutions more compact and efficient.
• GE Aerospace recently qualified high-voltage power units for U.S. military ground vehicles and demonstrated its fourth-gen SiC MOSFET devices.
• Wolfspeed recently launched what it calls the world’s first commercially available 10 kV SiC MOSFET and runs high-volume 200mm SiC manufacturing facilities.

GE Aerospace (GE) stock was trading at $322.73, down 1.61% on Monday, as the company announced a new technology partnership with Wolfspeed (WOLF).

GE Aerospace, GE

The two companies signed a Memorandum of Understanding to collaborate on high-voltage silicon carbide technology. The focus is on industrial, aerospace, and defense markets.

Under the MOU, GE Aerospace and Wolfspeed plan to develop standards for high-voltage SiC-based power modules. These would support solid-state transformers, industrial electrification, and next-generation defense platforms.

The deal also includes the supply of Wolfspeed’s 10 kV MOSFET die — a key building block for high-power electronics.

The companies say higher-voltage modules will cut down on the number of series-connected devices needed in a system. That translates to less complexity and smaller, more reliable solutions.

Wolfspeed CEO Robert Feurle pointed to converging demand from AI, electrification, and defense as the driver. “GE Aerospace and Wolfspeed are uniquely positioned to deliver the high-voltage silicon carbide building blocks the market needs,” he said.

GE Aerospace’s SiC Credentials

This isn’t GE Aerospace’s first move in silicon carbide. The company recently qualified high-voltage power units for U.S. military ground vehicles.

It also demonstrated its fourth generation of SiC power MOSFET devices at its Research Center in Niskayuna, New York. That’s a sign the company has been building in this space for a while.

GE Aerospace carries an installed base of roughly 50,000 commercial and 30,000 military aircraft engines. The company employs approximately 57,000 people globally.

Wolfspeed Brings the Manufacturing Muscle

Wolfspeed recently launched what it describes as the world’s first commercially available 10 kV SiC MOSFET. That’s a technically demanding product at the high end of the power electronics market.

The company also runs high-volume 200mm SiC wafer manufacturing, giving it the scale to support commercial rollout of jointly developed modules.

On the analyst side, Seaport Global Securities recently initiated coverage on GE Aerospace with a Buy rating and a $375 price target. The firm cited recent underperformance as a buying opportunity.

RBC Capital holds an Outperform rating with a $355 target, highlighting GE’s Defense & Propulsion Technologies segment as a positive driver.

GE Aerospace’s market cap sits at $342 billion, with revenue of $48.3 billion. InvestingPro analysis currently places the stock above its Fair Value estimate at $328.

The company’s CEO is also set to join a U.S. trade delegation to China, alongside other senior executives.

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