Shares of Archer Aviation (ACHR) are poised for substantial growth as the electric vertical takeoff and landing (eVTOL) market gains momentum in both mainstream and tactical aviation, according to analyst Shay Boloor from Stocktwits. He emphasized that “Aerial mobility is the next battlefield,” highlighting the evolving role of eVTOL technology beyond just flying taxis to encompass tactical logistics in contested airspace.
Founded in 2018, Archer Aviation is making significant strides in bringing eVTOL aircraft to the market and is reportedly ahead of its competitors in the FAA certification process. The company has already obtained Part 135 Air Carrier & Operator certification and Part 145 Repair Station certification, and is currently working towards a Type Certification for its Midnight aircraft.
Boloor noted that Archer is developing dual-use mobility platforms designed to operate quietly from locations like parking lots, facilitating the movement of personnel or goods. Notably, the U.S. Air Force is supporting the integration of Archer’s technology, indicating a robust interest in the potential applications of eVTOLs in military and logistical operations.
The eVTOL market, valued at approximately $3.31 billion, is projected to grow exponentially to $170 billion within the next decade, according to Precedence Statistics. Archer Aviation stands out as a prominent player in this nascent industry, with increasing collaborations with government agencies further solidifying its position.
In May, Archer’s stock hit a record high of $13.30 per share, more than doubling from a low of $6.51 on April 4. This spike can be attributed to stronger-than-anticipated results in the fiscal first quarter. Despite reporting a net loss of $0.17 per share, this figure was better than the $0.21 per-share loss analysts had predicted, with total losses improving to $93.4 million compared to $116.5 million in the same quarter of the previous year.
The company also reported a significant increase in cash reserves, reaching $1.03 billion, a rise from $834.5 million at the end of 2024. Additional positive developments include a new partnership with ADRL for hybrid eVTOL platform development and a strategic collaboration with Palantir to enhance AI-driven aviation technologies.
Though shares have experienced a slight decline from May’s peak, Archer stock remains above $11, reflecting a 27% increase over the past six months and a remarkable 108% rise over the past year. With a current market capitalization nearing $6.7 billion, Archer Aviation’s prospects seem bright in the evolving eVTOL landscape.
The positive trajectory of Archer Aviation not only reflects the company’s operational success but also underscores the growing acceptance and integration of innovative flying technology within our airspace systems, hinting at exciting possibilities for the future of aerial transportation.