Is Archer Aviation (ACHR) a Buy in 2026? Regulatory Progress and Technological Differentiation as Key Catalysts

The electric vertical takeoff and landing (eVTOL) industry is at a pivotal inflection point, with regulatory approvals and technological innovation serving as the twin engines of commercial viability. For Archer Aviation (ACHR), the path to becoming a market leader hinges on its ability to navigate the FAA certification process and leverage strategic partnerships to differentiate its Midnight eVTOL aircraft. As the company enters 2026, investors must weigh its regulatory milestones, technological advancements, and competitive positioning against the backdrop of a rapidly evolving sector.

Regulatory Progress: A Mixed Bag of Momentum and Challenges

Archer's 2025 regulatory efforts demonstrated tangible progress, though it remains behind key competitors like Joby Aviation. The company secured two critical FAA certifications in 2025: a Part 135 Air Carrier Certificate and a Part 145 Repair Station Certificate, enabling commercial air carrier operations and in-house maintenance activities. These approvals signal the FAA's confidence in Archer's operational framework, even as the company has yet to enter the for-credit testing phase-a step Joby has already completed according to NASDAQ reports.

Internationally, Archer has carved out a strategic foothold in Saudi Arabia. The General Authority of Civil Aviation (GACA) signed an agreement to align its eVTOL regulatory framework with FAA standards, paving the way for experimental flights and proof-of-concept demonstrations in cities like Riyadh and Jeddah. This partnership not only diversifies Archer's regulatory risk but also positions it to capitalize on early adopter markets in the Middle East.

However, the FAA certification timeline remains a wildcard. As of late 2025, Archer's Type Certification for the Midnight aircraft was only 15% complete, compared to Joby's 70% progress. While Archer's submission of final airworthiness criteria and entry into compliance testing are positive steps, according to MarketBeat, delays in securing full U.S. approval could hinder its 2026 commercialization ambitions.

Technological Differentiation: NVIDIA and Strategic Infrastructure

Archer's technological edge lies in its strategic partnerships and infrastructure investments. The integration of NVIDIA's IGX Thor platform into the Midnight aircraft is a standout differentiator. This platform enhances real-time data processing for safety systems and predictive maintenance, reducing operational costs and downtime. By embedding advanced computing capabilities, Archer is future-proofing its aircraft for autonomous operations-a critical advantage as the industry moves toward AI-driven flight systems.

Additionally, Archer's manufacturing partnership with Stellantis allows it to avoid costly factory build-outs, preserving capital while scaling production. The acquisition of Hawthorne Municipal Airport further cements its position in Los Angeles, a key market for air taxi services during the 2028 Olympics. These moves underscore Archer's focus on operational efficiency and market readiness, even as it lags in regulatory milestones.

Competitive Landscape: Joby's Lead vs. Archer's Undervaluation

Joby Aviation's regulatory head start is undeniable. Its S4 eVTOL aircraft has completed 70% of FAA Stage 4 certification requirements, with Type Inspection Authorization testing already underway according to Low Altitude Economy. Technologically, Joby's S4 boasts superior performance metrics: a 200-mph cruise speed, 150-mile range, and a lighter 4,300-pound empty weight compared to Archer's 7,000-pound Midnight according to industry analysis. These advantages position Joby as a near-term leader in long-distance urban mobility.

Yet Archer's lower valuation-$5.9 billion versus Joby's $13.2 billion as of December 2025- presents an intriguing opportunity for risk-tolerant investors. Archer's stock price fell 18% in 2025, while Joby surged 78%, reflecting divergent investor sentiment. This gap may be due to skepticism about Archer's execution risks, but its strong balance sheet (current ratio of 18.19 and $2 billion in liquidity according to MarketBeat) provides a buffer against delays.

Financial Resilience and Long-Term Risks

Archer's financial flexibility is a critical strength. The company raised over $2 billion in 2025, bolstering its ability to fund certification, production, and international expansion. This liquidity contrasts with the capital constraints faced by many eVTOL peers and positions Archer to weather economic volatility. However, scaling production to meet demand remains a challenge, particularly as it competes with Joby's more advanced certification timeline.

Conclusion: A Calculated Buy for 2026?

Archer Aviation's 2026 investment thesis rests on two pillars: regulatory progress in the U.S. and Saudi Arabia and technological differentiation through NVIDIA and infrastructure. While it trails Joby in FAA certification, its international partnerships and financial resilience offer a margin of safety. For investors who believe in the long-term potential of eVTOL and are willing to tolerate near-term regulatory risks, Archer's undervaluation and strategic bets could justify a "buy" rating.

However, caution is warranted. Delays in FAA approval or production bottlenecks could widen the gap with Joby, limiting Archer's market share. Investors must monitor the company's 2026 certification updates and its ability to translate technological advantages into operational efficiency. In a sector defined by first-mover advantages, Archer's success will depend on its capacity to accelerate its regulatory timeline while leveraging its unique differentiators.