GE Aerospace Stock Soars 3.12% on U.S. Defense Sector Optimism

On April 8, 2025, GE Aerospace's stock rose by 3.12% in pre-market trading, reflecting a positive market sentiment towards the company.

Analysts from UBS have highlighted that the aviation and defense sector in the U.S. is becoming an attractive investment option due to its high degree of domestic supply chain integration. This sector is seen as a safe haven for investors amid escalating trade tensions and economic uncertainties. The Trump administration's policies, particularly those aligned with "MAGA" ideology, are expected to bring significant orders for aviation giants like Boeing, potentially amounting to $230 billion.

Despite the risks posed by tariffs and economic downturns, the U.S. aviation and defense sector is supported by a strong demand for aircraft replacements and a robust aftermarket for defense products. The sector's supply chain is highly localized, with over 80% of its components sourced domestically, making it less vulnerable to global supply chain disruptions and tariff risks compared to other sectors.

GE Aerospace, along with other major players in the aviation and defense industry, is expected to benefit from this trend. The company's strong position in the global supply chain, particularly through its joint venture with Safran, further enhances its market standing. Additionally, GE Aerospace has recently entered into a five-year agreement with Royal Jordanian to support the airline's digital transformation, providing Software as a Service (SaaS) solutions aimed at improving fuel efficiency and safety measures.