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SANTA CLARA, Calif. - Archer Aviation Inc. (NYSE: ACHR), a $4.06 billion market cap aviation company, and Palantir Technologies Inc. (Nasdaq: PLTR) have announced a partnership aimed at developing artificial intelligence (AI) for advanced aviation technologies. The collaboration is set to focus on enhancing aircraft manufacturing capabilities and creating software for critical aviation systems such as air traffic, movement control, and route planning. According to InvestingPro data, Archer maintains a strong cash position, with liquid assets exceeding short-term obligations by a significant margin.
The partnership, which will be formalized in a signing ceremony today, plans to utilize Palantir Foundry and AIP to accelerate the scaling of Archer’s aircraft manufacturing at its facilities in Georgia and Silicon Valley. The goal is to drive innovation across the aviation industry’s entire value chain, improving efficiency, safety, and affordability.
Palantir co-founder and CEO, Alex Karp, emphasized the transformative potential of integrating Palantir’s AI capabilities with Archer’s approach to aircraft manufacturing and operations. Archer founder and CEO, Adam Goldstein, echoed the sentiment, highlighting the role of AI and software as pivotal in shaping the future of aviation.
The announcement comes at a time when the aviation industry is on the cusp of change, with AI and breakthroughs in distributed electric propulsion challenging the incremental progress traditionally seen in the sector.
This press release contains forward-looking statements that involve risks and uncertainties, and actual results may differ from the predictions made. The detailed risks are disclosed in Archer’s filings with the Securities and Exchange Commission.
The information for this article is based on a press release statement.
In other recent news, Archer Aviation has reported a mixed financial performance for the fourth quarter of 2024. The company ended the year with over $1 billion in liquidity, despite facing a 22% year-over-year increase in operating expenses, which totaled $380.6 million. Archer Aviation is advancing its Midnight electric air taxi development, with plans to deliver the first Midnight eVTOL to the UAE’s federal regulator later this year. Analysts from Benchmark and Needham have maintained their positive outlook on the company, with both firms reiterating their Buy ratings and setting price targets of $12 and $13, respectively. Cantor Fitzgerald and Canaccord Genuity have also shown confidence in Archer Aviation, maintaining Overweight and Buy ratings with price targets of $13 and $13.50, respectively. The analysts highlighted strategic partnerships and a robust order book exceeding $6 billion as key factors supporting Archer’s market position. Archer’s "Launch Edition" program, which aims to commercialize eVTOL technology in international markets prior to FAA certification, is expected to accelerate revenue generation. The company plans to construct 10 Midnight aircraft for certification purposes and to meet early adopter demands by 2025.
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