Archer Aviation Is Teaming Up With Boeing. Time to Buy the Dip?

After a comparatively quiescent archetypal fractional of the year, Archer Aviation (NYSE: ACHR) has kicked things into precocious gear. It's announced a flurry of breathtaking developments successful caller weeks, the astir caller of which involves its longtime partner, aerospace elephantine Boeing (NYSE: BA)

Archer has agreed to bargain 3 Boeing businesses -- Wisk Aero, Insitu, and SkyGrid -- successful speech for recently issued Archer stock. When the woody closes, Archer volition contented Boeing a involvement successful its banal adjacent to 19.75% of Class A shares instantly beforehand.

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Archer banal surged arsenic overmuch arsenic 25%, but has since dialed backmost to a astir 13% summation astatine the clip of this writing. Still, the quality has reinvigorated Archer investors with what could go 1 of the astir consequential deals successful the company's abbreviated past -- astatine least, from the standpoint of its burgeoning defence business.

Let's look astatine wherefore the woody matters, the pros and the cons, and whether it makes maine much oregon little bullish connected Archer stock.

Boeing is giving Archer's defence concern a large boost

Archer is trying to physique caller craft for municipality transportation, military, and defense. For astir its full life, the institution has been moving tirelessly to certify its Midnight eVTOL (electric vertical take-off and landing) aircraft, which would alteration it to commercialize its aerial taxi business.

Most radical person known Archer from this imaginativeness of municipality aerial travel, which has often been likened to flying cars (though don't get your hopes up: Midnight is thing similar the hovering cars of Back to the Future: Part II). But lately Archer has leaned harder into different broadside of its business, 1 that could enactment much-needed gross successful its pockets earlier the aerial taxi broadside is wide for takeoff.

That broadside of its concern is defense. Archer has worked with the U.S. Department of Defense for years, but its existent defence concern ramped up successful precocious 2024, erstwhile Archer and the defence exertion institution Anduril established a strategical partnership. The fruits of that narration emerged past month, erstwhile the companies unveiled a jointly developed autonomous level and its subject variant, Thunder.

It's nary shocker, then, that 1 of the 3 Boeing businesses Archer is acquiring is besides a meaningfully profitable military-drone institution -- Insitu. Insitu, which deals successful uncrewed craft systems (UAS), and has manufactured and fielded much than 3,500 of them, is generating much than $200 cardinal successful yearly revenue. That's astir $200 cardinal much than what Archer itself generated successful 2025 (about $300,000).