Archer Aviation is an early pioneer of the vertical take off and landing electric aircraft market.
Management expects the company to begin revenue recognition in early 2026.
Positive business updates could inspire renewed buying activity in Archer shares next year.
10 Stocks We Like More Than Archer Aviation ›
Every now and then, a start-up becomes a household name overnight after raising a huge round of funding from top venture capital firms and achieving unicorn status — meaning a valuation of $1 billion or more.
When this happens, it’s common for investors to wonder how they could have gotten into the action. Unfortunately, investing in start-ups is a no-go for most people. Unless you are an accredited investor or have access to secondary market sales, investing in private companies is difficult to do.
A decent substitute, however, could be allocating a small portion of your portfolio to speculative assets. One of the most popular speculative opportunities in recent years is electric vertical takeoff and landing (eVTOL) aircraft. In particular, Archer Aviation(NYSE: ACHR) the stock has become a favorite among eVTOL enthusiasts.
With shares down 50% from all-time highs, I believe Archer stock could rise to new highs in 2026. Let’s explore what makes Archer such an exciting opportunity and assess why the stock could be headed for a takeoff in the new year.
Archer Aviation manufactures electric air taxis. While this sounds like some kind of technology straight from The JetsonsArcher brings it to life — and Wall Street is on board. Research from Morgan Stanley suggests the low-altitude market could be worth $9 trillion by 2050, given its applications to change urban mobility and defense operations.
To date, Archer has signed a number of strategic partnerships with commercial aircraft, including United AirlinesKorean Air and Soracle — the latter being a joint venture between Japan Airlines and Sumitomo.
Outside of traditional airlines, Archer has also partnered with Palantir Technologies on the development of a state-of-the-art aviation system, bringing a new level of innovation to much-antiquated flight mechanics and operations.
Additionally, Archer is branching out into the defense space. Specifically, the company has received interest from the US military for its aircraft and has also partnered with Anduril to develop autonomous drone systems.
Image source: Archer Aviation.
While the details above may inspire some excitement around Archer, investors should be aware that the company has yet to achieve commercial adoption. In this context, the stock tends to move based on headlines and news updates.
This makes Archer stock particularly unpredictable. What’s more, news goes both ways: When Archer announces a new partnership, the stock rises. But investors are becoming wary of regulatory or operational delays in the company’s product roadmap, confidence is eroding and sales are occurring.
One aspect investors may overlook with Archer is its international appeal. While the company is making strides with the FAA in the US, Archer management recently said its first batch of revenue should come in the first quarter of 2026 from its partners in the Middle East.
ACHR Annual Revenue Estimates data by YCharts.
Wall Street appears to be aligned with that view, as analysts are modeling revenue to start flowing through the doors beginning early next year.
Here’s my take on the estimates in the chart: In a similar way to an early-stage company, accurate sales numbers matter less than actually delivering the product execution and getting paid. If Archer is able to post a sales figure in the first quarter of 2026, I predict the stock could bounce back sharply.
Now, here’s the caveat to investing in Archer stock. Investors should view Archer as similar to that of a small biotech before receiving FDA approval for a new drug. While there’s money to be made, smart investors understand that these opportunities feature extreme volatility — riding on fleeting bursts of momentum.
For now, Archer will remain a big capital expenditure (capex) and cash-burning operation. Even with commercial adoption looming on the horizon, it will be some time before the company’s unit economics are compelling enough to justify a serious portfolio allocation.
For these reasons, I think Archer is best reserved for day traders. Despite high interest from the public and private sectors, Archer remains something of a showpiece. Unless you can stomach uncertainty coupled with speculation and volatility, smart investors should continue to monitor Archer and its business progress, but wait for sustained adoption and recurring revenue before making an investment.
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Adam Spatacco holds positions in Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.
Prediction: Archer Aviation to Soar to New Heights in 2026 was originally published by The Motley Fool
