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Together, artificial intelligence (AI)-driven analytics and electric propulsion are reshaping the skies and creating a new era for the aviation industry. AI is no longer just a concept. It’s transforming air traffic management, predictive maintenance, and manufacturing efficiency.
Archer Aviation (ACHR) has now entered a pivotal partnership with Palantir Technologies (PLTR), marking a significant leap in this transformation. Leveraging Palantir’s Foundry and Artificial Intelligence Platform (AIP), the collaboration aims to revolutionize air traffic management, optimize production at Archer’s Georgia and Silicon Valley facilities, and set new safety and efficiency benchmarks.
Market analysts see this as a high-stakes move, projecting long-term growth for both companies. With aviation’s digital revolution in full swing and ACHR stock already soaring on eVTOL hype, does this AI alliance signal further upside, or is the runway already priced in? Should investors buy into Archer’s vision now or wait and see how the skies unfold?
About Archer Aviation Stock
San Jose-based Archer Aviation (ACHR) is making waves in the aerospace and defense sector. With a laser focus on urban air mobility (UAM), the company is developing cutting-edge electric vertical takeoff and landing (eVTOL) aircraft.
Boasting a market capitalization of $4.4 billion, Archer has forged partnerships with major industry players, including Southwest Airlines (LUV) and United Airlines Holdings (UAL), to help establish urban mobility networks in Los Angeles and San Francisco. Abu Dhabi Aviation, the Middle East’s largest commercial helicopter operator, is gearing up to deploy Archer’s flying taxis in 2025.
ACHR stock has been flying high. Over the last 52 weeks, it has climbed 74.5%, far outpacing the S&P 500 Index’s ($SPX) 9.6% gain.
Just last week, ACHR spiked over 16% on news of a partnership with Palantir, proving momentum is firmly in its cockpit.
A Closer Look at Archer Aviation’s Q4 Earnings
Archer Aviation is soaring into 2025 with turbulence in its earnings but ample capital reserves to fuel its ambitions. The air taxi innovator reported its fiscal Q4 earnings results on Feb. 27, posting a net loss of $198.1 million - almost double the $109.1 million loss from a year earlier. Adjusted EBITDA loss followed suit, widening to $94.8 million from $85.2 million a year ago.
But while its bottom line remains under pressure, Archer is reinforcing its financial runway. The company ended the quarter with $834.5 million in cash and cash equivalents, marking its strongest quarter-end balance to date. Early 2025 brought another liquidity boost - a $301.8 million registered direct offering - pushing total liquidity to a formidable $1.1 billion. With these funds, Archer is powering forward, intent on cementing its place at the forefront of urban air mobility.
Momentum is also building on the regulatory front. In late February, the U.S. Federal Aviation Administration (FAA) greenlit Archer’s pilot training academy, an essential step toward commercial operations. This milestone signals the industry’s shift from vision to reality, with Archer training the next generation of eVTOL pilots.
Looking ahead to the first quarter of fiscal 2025, the company expects an adjusted EBITDA loss between $95 million and $110 million. However, analysts see a silver lining, projecting a 27.8% improvement in Q1 loss per share to $0.26. Fiscal 2025 losses are set to shrink 24.7% year over year to $1.07 per share, with another 10.3% drop expected to $0.96 per share in fiscal 2026. The climb to profitability is steep, but Archer’s descent into red ink is slowing fast.
Palantir’s AI Boosts Archer’s Vision
Archer Aviation is pioneering eVTOL aircraft, aiming to revolutionize urban mobility with efficient, electric air taxis. But its ambitions extend beyond commercial transport. The timing of the partnership with Palantir could not be more strategic. If this collaboration delivers on its promise, it could unlock exponential value for Archer Aviation over the next decade. Archer is leveraging AI to streamline manufacturing and develop advanced air traffic control systems.
More intriguingly, Palantir’s deep military ties could open doors for defense applications - an area where Archer has shown keen interest. As aviation innovation stalls, Archer is poised to lead a tech-driven shift, blending AI, automation, and aerial mobility into a bold new future.
What Do Analysts Expect for Archer Aviation Stock?
Wall Street continues to show confidence in the company’s future, with optimism running high among analysts. Leading the charge, Cantor Fitzgerald’s Andres Sheppard has reaffirmed his “Overweight” rating, keeping the price target steady at $13.
His confidence stems from the company’s growing list of high-profile partnerships, Anduril, the Department of Defense, United Airlines, and Stellantis (STLA), all of which are expected to accelerate commercialization, expand its total addressable market, and refine its operations and manufacturing.
Analysts maintain a favorable stance on ACHR, assigning it a consensus rating of “Moderate Buy.” Of the nine analysts covering the stock, five advocate a “Strong Buy,” two recommend a “Moderate Buy,” and the remaining two analysts suggest a “Hold.”
Meanwhile, the average price target of $11.39 represents potential upside of roughly 40%, while the Street-high target of $13.50 suggests an even greater leap of 66.5% from current levels.
