Here’s why the Archer Materials (ASX:AXE) share price rocketed 32% today

The company just announced a major breakthrough…

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The Archer Materials Ltd (ASX: AXE) share price was on fire today following a technical progress update on the company’s biochip.

At the close of trading, the materials technology company’s shares were swapping hands for $1.36 apiece, a gain of 32.04%.

What did Archer Materials announce?

The Archer Materials share price soared today after the company revealed it had successfully addressed a key nanotech challenge on its biochip technology.

Last month, the company developed its first biochemical reactions for detecting nucleic acid sequences. This allowed small droplets of biological samples to be processed and analysed using graphene-based sensors integrated within the biochip.

Nucleic acid markers are useful for monitoring the various states of a person’s health to see if disease is present. Commonly known techniques that use this method include polymerase chain reaction (PCR) tests.

However, the latest update surrounds the company’s in-house capability of integrating a single-atom-thick graphene on a silicon wafer.

Archer Materials stated that it used an electron beam lithography system to repeatably and reproducibly fabricate the graphene devices. This represents a significant technical achievement for the company as it intends to use graphene as an ultrasensitive sensor.

An advanced material composite, graphene on the nanoscale is highly advantageous for detecting and analysing diseases. It has unique properties such as high electron mobility and chemical stability for sensing the activity of biological molecules.

What did management say?

Commenting on the news driving the Archer Materials share price, CEO Dr Mohammad Choucair said:

Archer’s use of advanced lithography systems to successfully integrate graphene with silicon electronics is a significant step in the Company’s biochip development.

This is the culmination of a lot of strategic planning and coordination involving talented people, world-class facilities, and technology to get to this point. It’s exciting that Archer’s CQ quantum chip development could also benefit from this latest achievement.

About the Archer Materials share price

The Archer Materials share price has surged around 140% in the past 12 months. However, the company’s shares are 56% off their all-time high of $3.08 reached in mid-August 2021.

Based on valuation grounds, Archer presides a market capitalisation of around $305.75 million, with almost 247.57 million shares outstanding.

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Motley Fool contributor Aaron Teboneras has no position 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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