Archer Share Price Up 4% as It Unveils New Collaboration (ASX:AXE)

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When you think of quantum computing, missiles usually aren’t the first thing to come to mind.

But, when it comes to advances in technology, the defence industry has always been a leading pioneer. Championing new ideas and innovations for the sake of protecting national security.

And today, thanks to Archer Materials Ltd‘s [ASX:AXE] ongoing quantum efforts, it has landed its first defence partnership. Teaming up with leading munitions supplier NIOA, to develop the next generation of missile guided weapons.

Let’s take a closer look, shall we?

New missiles for new-age threats

As Archer outlines in their update, they will be collaborating with the Australian Missile Corporation. A subsidiary of the much larger NIOA conglomerate.

Together, they have signed a non-binding letter of intent to ‘fulfil the Australian Government’s long-term vision of developing sovereign Australian defence industrial capabilities.

In other words, shoring up our own local military muscle, to deal with whatever threats may present themselves in the near or distant future. And that includes the potential for quantum computing-based technology within missile guidance systems…

Beyond that, though, neither Archer nor NIOA has provided any concrete details for their plans.

No doubt because Archer’s technology is still very much in its infancy. As are all quantum computing efforts.

But we’re sure both parties would be keeping quiet even if they did have anything to share. As is often the case when it comes to defence-related issues.

However, with the government expected to spend $270 billion on defence efforts over the next 10 years, it is certainly an area with plenty of potential. With NIOA estimating that up to $40 billion alone could be allocated to new ‘Sovereign Guided Missile Enterprise’ efforts over the next two decades.

It’s a timely update too, considering Archer divulged its latest biochip testing on Friday as well. Which they described as follows:

This new capability provides the high-quality and reliable technical specifications necessary for Archer’s future patent applications. The establishment of semiconductor chip testing allows Archer to reach a number of biochip development milestones, including the fabrication of graphene transistors and their operation at the limits of what can be achieved technologically.

So, while progress on their quantum efforts may have slowed, Archer is progressing, nonetheless.

A key win for Archer, and its shareholders.

What’s next for Archer Share Price?

At the end of the day, the key consideration for Archer investors is time. Because no matter how you want to spin it, development of quantum computing is going to be a marathon — not a sprint.

For that reason, shareholders need to think long term. Which is precisely what most of them appear to be doing, considering how far the stock has come in the span of about 14 months.

So, if they can remain patient, and Archer can continue to progress, the investment thesis should remain intact. And for speculative shareholders, that risk presents a reward that is as hard to quantify as the technology itself.

But keep in mind, Archer isn’t the only high-risk and high-reward tech play on the ASX. The AI-focused sector in particular has a few up-and-coming stocks worth mentioning. All of which could deliver the same kind of explosive returns that Archer has in recent months.

To learn more about this opportunity, and five of our top picks, check out our AI stock report for yourself.


Ryan Clarkson-Ledward,
For Money Morning

PS: Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here

About Ryan Clarkson-Ledward

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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