7 Best Small-Cap Drone Stocks to Buy Now

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1. Archer Aviation Inc. (NYSE:ACHR)

Market Capitalization: $4.90 Billion

No. of Hedge Fund Holders: 23

Archer Aviation Inc. (NYSE:ACHR) is an aerospace company focused on the design and development of eVTOL aircraft. The company is expanding its network globally with new agreements and new facility installations. Archer Aviation recently signed a partnership with the aviation sector in Abu Dhabi to serve as the primary eVTOL aircraft manufacturer for the Emirate’s planned electric air taxi operations. Archer has become the first eVTOL manufacturer to establish manufacturing capabilities in the United Arab Emirates. The company has also received approval to install a manufacturing facility in Covington, Georgia, which will be able to produce 650 aircraft annually by 2030.

In the third quarter of 2024, the company achieved key partnerships and manufacturing expansions to drive growth. The company’s collaboration with industry leaders including Stellantis provides a robust financial backing for manufacturing growth. Stellantis has committed up to $400 million in additional capital to the company.

Archer Aviation Inc. (NYSE:ACHR) is targeting key markets in the U.S., Middle East, and Asia, supported by government backing. The company has a pre-order backlog of approximately $6 billion, including pre-delivery payments, reflecting strong market interest.

While we acknowledge the potential of ACHR to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ACHR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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