Archer Aviation (NYSE: ACHR) stock has seen some volatile swings this year. The flying taxi stock has climbed roughly 17% over the last month, but it's still down 35% across the year's trading.

In a research note published on July 24, JPMorgan reiterated an overweight rating on Archer Aviation and raised its one-year price target on the stock from $5 per share to $6 per share. With the company currently trading at roughly $4 per share, the new price target suggests upside of 50%.

Should you follow JPMorgan's bullish lead on Archer stock?

JPMorgan's lead analyst is bullish on Archer Aviation stock heading into the flying-taxi company's second-quarter earnings release on Aug. 8 but also noted that the earnings report was unlikely to deliver any big surprises. Archer is still in the early phases of bringing its Midnight vehicles to market, and the business remains in a pre-revenue state. JPMorgan's analyst noted the speculative nature of the stock in the report and said that some investors may want to stay on the sidelines until there's more visibility on its operational ramp and financial footing, along with other factors.

As of this writing, Archer Aviation has a market capitalization of roughly $1.4 billion. That's a lofty valuation for a company that isn't posting any sales, but there are signs that the business and overall flying taxi market will see rapid expansion in the near future. According to a report from Spherical Research and Consulting, the flying-taxi market could be worth more than $80 billion annually by 2033.

Investors should approach Archer Aviation with the understanding that it's a high-risk, high-reward stock. If you're an investor who sees promise in the flying-taxi space and doesn't mind the risk profile, Archer looks like a smart bet in the category. But it probably won't be a great fit for more risk-averse investors.

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