Archer Aviation (NASDAQ:ACHR) envisions a future where being late to a meeting no longer means sitting helplessly in bumper-to-bumper traffic. Instead, the company aims to lift commuters above the gridlock with its ambitious plan to offer eVTOL rides as an alternative to ground transportation.
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But while the vision is bold, the path forward is far from smooth. In ACHR’s case, the obstacles come in the form of regulatory hurdles, steep financial needs, technical risks, and the daunting task of winning over commercial markets.
Those hurdles haven’t stopped Archer from steadily checking boxes on its journey toward commercialization. The company has launched a flight test program in Abu Dhabi, is expanding manufacturing capacity in Georgia and California, and has secured partnerships with aviation heavyweights such as United Airlines and Southwest Airlines. It also earned a high-profile role as the official air taxi provider of the 2028 Los Angeles Olympics.
That optimism, however, has recently been tested. Since July’s peak, shares have dropped about 37% following an $850 million equity offering that diluted shareholders, a lawsuit that introduced new uncertainties, and renewed concerns around regulation and profit-taking.
This pullback raises the obvious question of whether the turbulence is creating an entry point or a warning sign to stay grounded. Top investor Keith Noonan is ready for take off, though the investor cautions this is not one for those with squeamish stomachs.
“If you can live with a multi-year timeline and can stomach turbulence in the near term, a small holding could set you up down the road. If you need predictability, look elsewhere,” says the 5-star TipRanks investor.
Noonan points to Archer’s partnerships with “major blue-chip companies” and the $1.7 billion cash balance it held at the end of Q2 2025 as reasons for confidence. In his view, these resources provide Archer with the financial runway needed to navigate the risks of scaling.
The investor also highlights the sheer size of the opportunity: Morgan Stanley estimates that the urban air mobility market could be worth a staggering $9 trillion by 2050.
“Even capturing a fraction of that market could mean decades of double-digit growth,” Noonan argues.
Still, the investor acknowledges the dangers are real. FAA approval is not guaranteed, rivals are racing to capture market share, and the infrastructure needed to support widespread eVTOL adoption remains in its infancy.
For Noonan, the upside outweighs the risk, making ACHR a Buy for aggressive investors willing to brave volatility. (To watch Noonan’s track record, click here)
Wall Street, it seems, shares that sentiment. With 6 Buys and 1 Hold, ACHR carries a Strong Buy consensus rating. Analysts’ average 12-month price target of $13.14 suggests ~56% upside from current levels. (See ACHR stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.