Why the Archer Materials (ASX:AXE) share price is up 30% in a week

It's been a big week for the semiconductor company. Let's take a closer look

The Archer Materials Ltd (ASX: AXE) share price has landed firmly in the green since last Friday's close.

Archer shares finished yesterday's close at $1.27, a 30% gain for the Australian semiconductor company. In early trading today, the shares are swapping hands for $1.26 — a fall of 0.78%.

Let's take a look at two key events that might help explain Archer's share price movements lately.

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Image source: Getty Images

But first — what is Archer Materials?

Archer classifies itself as a materials technology company that has unique expertise in building semiconductors.

The company is currently in the process of developing its "12CQ quantum computing chip", and is the only ASX-listed company doing so.

To illustrate, the 12CQ chip is a "world-first qubit processor", aiming to increase the accessibility of quantum computing.

At the time of writing, Archer has a market capitalisation of $290 million.

Presenting at the Proactive Technology Webinar

On 13 July, Archer chief executive Mohammad Choucair presented the 12CQ chip to an audience of global tech investors, Proactive Investors reported.

During Tuesday's webinar, Choucair described to investors the "global-scale opportunity its technology represents".

This opportunity stems from growth in the "multibillion-dollar quantum computing economy", Choucair said on Tuesday.

Speaking on the product's potential end-uses, Archer's top executive stated:

The 12CQ chip would allow for quantum computing onboard mobile devices for speedups and increased power in AI, big data and fintech applications … We expect Archer's quantum chip technology to create entirely new quantum computing-powered mobile devices that enable industry-wide innovation.

The Archer Materials share price has climbed a further 10% into the green following the webinar.

Significant progress in 12CQ development

The company announced on July 12 "significant" progress had been made on its 12CQ chip development.

According to the company, its discovery of on-chip qubit control in "microscopic-scale qubit material" is a key milestone in 12CQ's growth narrative.

In the release, Archer stated it recorded "continuous wave electron spin resonance" using a device that integrates this material.

Consequently, Archer is progressing forwards with its focus on achieving qubit control, claiming Monday's announcement is a "major technological feat" for 12CQ.

Investors seem to feel the same way, having rewarded Archer shares over the previous few days following the announcement.

The Archer Materials share price has gained 15% since Monday's closing price following the announcement.

Archer Materials share price snapshot

Archer shares have spent this year to date in the green, posting a return of 71% before today's open. This extends the previous 12 month's return of 145%.

Both returns have beaten the S&P / ASX 200 Index (ASX: XJO)'s return of 22% over the same period.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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.

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