Cathie Wood is no longer a huge fan of Nvidia. Her Ark Invest exchange-traded funds have steadily sold large blocks of shares in the chipmaker in recent months.  

However, Wood has become even more enamored with another innovative company that has delivered an even more spectacular return than Nvidia so far this year. She just loaded up on this high-flying growth stock. Is it a buy after soaring more than 270%?

Electricity in the air

Which stock has especially captured Wood's fancy these days? Archer Aviation (ACHR 1.00%). The company went public nearly two years ago through a merger with special purpose acquisition company (SPAC) Atlas Crest Investment. Although Archer stock didn't get off to a great start then, it's been sizzling hot so far in 2023. 

Archer is developing electric vertical takeoff and landing (eVTOL) aircraft. This isn't "meet George Jetson" technology just yet. But it's not too far off.

The company's Midnight eVTOL aircraft can fly up to 100 miles at speeds of up to 150 miles per hour. They're powered by six independent battery packs that each support two electric engines. Archer believes that its aircraft are ideally suited as air taxis in urban areas. 

United Airlines is already onboard. Earlier this year, United and Archer announced plans to use Archer's Midnight aircraft to transport passengers between O'Hare International Airport and downtown Chicago. United also intends to roll out an air taxi service using Archer's aircraft between Newark Liberty International Airport and New York City.

The U.S. Air Force also has signed contracts with Archer of up to $142 million. It wants to use Midnight eVTOL aircraft for purposes including transporting personnel, providing logistics support, and conducting rescue operations. 

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Wood has been a longtime vocal proponent of electric cars. It's not surprising that she also really likes the idea of electric aircraft. She first invested in Archer Aviation in the third quarter of 2021. In the next quarter, Wood nearly doubled her Ark Invest stake in the company.  Throughout 2022, Wood's Ark Invest ETFs trimmed their positions in Archer. The selling continued into the early part of this year. 

However, Archer Aviation is once again in Wood's crosshairs. During August, her flagship Ark Innovation ETF (ARKK 1.05%), the Ark Autonomous Technology & Robotics ETF (ARKQ 2.52%), and the Ark Space Exploration and Innovation ETF (ARKX 3.13%) collectively scooped up more than 1.1 million shares of Archer. Over 150,000 of those shares were bought just last week. The eVTOL stock now ranks as the Ark Space Exploration and Innovation ETF's sixth-largest holding. It's the seventh-largest position for the Ark Autonomous Technology & Robotics ETF.

Is Archer Aviation stock a buy?

Before retail investors jump aboard Archer Aviation, there are a few things to consider. Most importantly, the company isn't profitable. Archer hasn't even generated any revenue yet.

In the second quarter of 2023, Archer recorded a loss of $184 million based on generally accepted accounting principles (GAAP). The company ended Q2 with cash, cash equivalents, and short-term investments of under $407 million. Since then, Archer closed on part of an investment round that it expects to raise $215 million. 

The company doesn't expect to launch its commercial service until 2025. Archer thinks that it will have enough liquidity to fund operations until then. However, any major hiccups could require additional capital to be raised.

Overall, Archer Aviation isn't the kind of stock that's likely to attract risk-averse investors. But for aggressive investors willing to be patient and tolerate some volatility along the way, this high-flying stock could provide a fun ride over the next several years.