Chips ahoy! Here's why the Archer Materials (ASX:AXE) share price is leaping 5%

What's driving Archer shares forward on Wednesday?

| More on:
computer chip, chip technology, computer chip circuit, technology shares

Image source: Getty Images

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

Key points

  • Archer shares accelerate by 4.97% to $1.055
  • The company received European patent approval for its flagship, CQ chip 
  • Securing IP protection allows Archer to pursue future commercialisation opportunities

The Archer Materials Ltd (ASX: AXE) share price is advancing during late afternoon trade today. This comes after the semiconductor company announced a positive update regarding its CQ quantum computing chip.

At the time of writing, Archer Materials shares are swapping hands for $1.055 cents, up 4.97%.

Archer adds to its intellectual property portfolio

Investors are pushing Archer shares higher after digesting the company's latest win.

According to its release, Archer advised it has been approved for a European patent associated with its CQ quantum computing chip technology.

This follows numerous other patents that have been granted approval in Japan, South Korea, China and the United States. Currently, Australia and Hong Kong are in the midst of their patent application process.

Archer noted that the European approval represents a significant early-stage milestone in the development of the CQ chip. The jurisdictions in which the European patent is now effective spans across a number of countries in the continent. This includes Belgium, Switzerland & Liechtenstein, Germany, Spain, France, the United Kingdom, Italy, Turkey, the Netherlands, Sweden, and Ireland.

The company considers the jurisdictions as critical strategic markets to protect and potentially commercialise its IP.

European Patent protection is required for any possible future commercialisation operations. With the latest approval, Archer has access to Europe's largest economies to explore sales opportunities within each of the countries.

Quick take on Archer

Founded in 2007, Archer is a technology company developing advanced semiconductor devices. This encompasses chips that can be used in quantum computing and medical diagnostics.

Archer's flagship development, the CQ chip, is a world-first technology that could allow for quantum computing powered mobile devices.

Archer share price snapshot

It's been an interesting year for Archer shares, having moved in circles until the start of July. Over the last 12 months, the company's share price has increased by around 4% and is down 6% year-to-date.

On valuation grounds, Archer commands a market capitalisation of roughly $259.95 million, with approximately 247.56 million shares outstanding.

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.

More on Technology Shares

Man pointing at a blue rising share price graph.
Technology Shares

Up 30% in a month, this ASX 200 tech share is 'a compelling opportunity': expert

Analysts from listed investment company WAM Capital say this ASX 200 tech stock is worth watching.

Read more »

A young man goes over his finances and investment portfolio at home.
Technology Shares

How much upside does Macquarie tip for Light & Wonder shares after its result?

Let's see what the broker is saying about this tech stock.

Read more »

Business people discussing project on digital tablet.
Technology Shares

Guess which ASX 200 stock is down 4% following Q3 update

Let's see what is causing investors to hit the sell button today.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Technology Shares

Guess which ASX 200 tech stock is crashing 14% on results day

This tech stock is having a rough time today. But why?

Read more »

Data Centre Technology
Technology Shares

Is it too late to buy NextDC shares?

NextDC's share price has surged over the last couple of weeks. Will it continue?

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Technology Shares

Guess which ASX 200 tech stock is crashing 25% following an update

This tech stock is being sold off on Wednesday. But why?

Read more »

A young man goes over his finances and investment portfolio at home.
Technology Shares

Why are WiseTech shares sinking 6% today?

What's going on? Let's find out what is happening with this tech stock today.

Read more »

Two IT professionals walk along a wall of mainframes in a data centre discussing various things
AI Stocks

NextDC share price lifts off on record quarterly contract wins

AI-fuelled data centre demand is lifting investor interest in the ASX 200 tech stock today.

Read more »