Palantir Technologies (NYSE: PLTR) has become one of the most talked-about names in artificial intelligence and not just because of its work with governments and Fortune 500s.
Investors have started to view a Palantir partnership as something of a credibility stamp. So when the company joined forces with a lesser-known player like Archer Aviation (NYSE: ACHR), the market took notice.
The big idea is to use AI to streamline operations and help Archer become a key player in the air taxi market, so what are the odds of success?
Key Points
-
Archer’s partnership with Palantir boosts its profile, but success still depends on execution.
-
Archer aims to scale production and debut at the 2028 Olympics, but it’s burning cash fast and hasn’t made a sale.
-
A $5B+ valuation and 200% stock surge rest on future potential, not proven performance—leaving little room for missteps.
Flying High If It Can Get Off the Ground
Archer is still in the early innings as evidenced by the fact that its flagship aircraft, the Midnight, isn’t rolling off production lines just yet.
But the leadership team forecasts manufacturing at least two a month by year end. Looking further out, they’ve set a target of 650 units per year by 2030.
That’s a steep ramp, especially for a startup still navigating regulatory approvals, complex supply chains, and the mechanics of large-scale manufacturing.
This is where Palantir comes in. Archer is leaning on Palantir’s Foundry platform, a powerful AI-driven data system, to make smarter decisions around production, logistics, and inventory. If the tech delivers, it could shave time and cost off Archer’s path to commercialization.
The Spotlight Is Coming
Archer isn’t just working in the shadows. It’s already scored a high-profile role as the official air mobility partner for the 2028 Los Angeles Olympic Games. That’s not just a PR win but a golden opportunity to showcase its aircraft to the world on a massive stage.
Even sooner, Archer has its sights set on international exposure. Management expects to deliver its first piloted Midnight aircraft to the UAE as early as this summer. If that happens, it will prove Archer can fly in the real world.
Investors Are Excited But There’s a Catch
It’s easy to get caught up in the hype. Archer’s stock has exploded 200% in the past year, lifting its market cap above $5 billion. That’s a huge vote of confidence for a company that—so far—hasn’t generated a single dollar in revenue.
In Q1 alone, Archer reported an operating loss of $144 million, slightly wider than the year-ago period. And while the company still has over $1 billion in cash, it burned through nearly $95 million in operating expenses in just the first quarter. That runway could shrink fast once production ramps up.
The silver lining? Archer isn’t strapped for cash, at least not yet. But with no revenue and an unproven path to profitability, investors are essentially betting on a vision. And while the air taxi market may indeed prove massive over the next decade, success hinges on execution: building safe, reliable aircraft at scale and getting regulatory approvals across multiple countries.
Should You Buy Archer Stock?
If you’re looking for a speculative moonshot with long-term upside, Archer might be on your radar. But with the stock already priced for perfection and no financial foundation to speak of, it’s a high-risk proposition.
The Palantir partnership is promising—but it doesn’t guarantee a smoother takeoff for Archer. It’s one piece of the puzzle, not a golden ticket. Investors would be wise not to overestimate its immediate impact.
Until Archer starts delivering aircraft, booking real revenue, and demonstrating a path to positive margins, the stock remains more dream than reality. At today’s valuation, there’s very little margin for error—and virtually no cushion if things don’t go according to plan.
In short, watch Archer closely. Just don’t climb aboard quite yet.