Archer (ASX:AXE) share price retreats despite positive update

The Archer Materials Ltd (ASX: AXE) share price has retreated in late-afternoon despite announcing a positive update. Here's the details.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Archer Materials Ltd (ASX: AXE) share price has retreated in late-afternoon trade after soaring as high as 93.5 cents. This comes after the company announced that it has begun to progress on the pathway for sub-10 nanometre biochip fabrication.

At the time of writing, the advanced material company's shares are fetching 90 cents apiece, flat for the day.

4DS share price

Image source: Getty Images

Development plans

Archer shares were trading on a high earlier on but have since fallen back to yesterday's market close.

According to its release, Archer advised it has commenced development to produce biochip components that are under 10 nanometres (nm) in size. In comparison, a human hair is around 75 microns or 75,000 nm.

Archer noted that miniaturisation to below 10 nm is a key requirement for the operation and end-use of its biochip. Anything less than 10nm is considered as best-in-class across the semiconductor industry.

The company explained that if successful in creating prototype biochip devices, it would remove significant barriers to entry. This includes pattern design and process optimisation, for on-chip fabrication of biosensor components.

What did the CEO say?

Archer CEO, Dr Mohammad Choucair touched on the company's nanofabrication development, saying:

Archer has progressed to one of the most advanced forms of nanofabrication after recently translating biosensor components onto silicon wafers. We are expanding on this strength with in-house capability to build a robust biochip IP portfolio. This is key to Archer's long-term growth, and near-term speed of execution in its deep tech development.

Best-in-class capabilities in nanofabrication is a global competitive advantage in the multibillion-dollar point of care medical diagnostics industry. One of the reasons why there are few companies in the world developing and commercialising biochips is because it's difficult to achieve precision engineering at the nano scale.

Archer share price summary

Over the past year, the Archer share price has accelerated over 400%, with 75% of those gains coming in 2021 so far. The company's shares reached an all-time high of $1.24 in late February on the back of achieving a technological breakthrough.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A financial expert or broker looks worried as he checks out a graph showing market volatility.
Share Market News

Buy, hold, sell: Objective Corp, ResMed, and South32 shares

Morgans has been busy updating its view on these shares.

Read more »

A group of hands up in the air as if signifying a hearty vote in favour of a motion.
Broker Notes

9 ASX 200 shares with renewed buy ratings for FY27

Brokers maintained a positive stance on BHP, JB Hi-Fi, ANZ, and other ASX 200 shares this week. 

Read more »

A woman in a red dress holding up a red graph.
Broker Notes

Three ASX 200 companies Macquarie says are a buy right now

There's plenty of value to be had here.

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly.
Resources Shares

5 best ASX 200 mining shares of FY26

We explain why these 5 mining stocks experienced the highest capital growth last year.

Read more »

Magnifying glass in front of an open newspaper with paper houses.
Share Market News

ASX shares vs. property in FY26: Which investment outperformed?

Looking ahead, how will proposed capital gains tax changes impact the property market?

Read more »

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a very happy Friday indeed on the ASX.

Read more »

A woman holds a tape measure against a wall painted with the word BIG.
Share Gainers

6 ASX 200 large-cap shares that rose 60% to 275% in FY26

Large-cap stocks are worth $10 billion or more. These were last year's top 6 gainers.

Read more »

Three trophies in declining sizes with a red curtain backdrop.
Share Gainers

3 ASX 200 stocks storming higher this week on big announcements

Investors sent these three stocks rocketing 15% to 37% this week. But why?

Read more »