Solar energy giant First Solar set to prosper - is it worth investing?
First Solar: A Bright Future in Solar Energy
First Solar, a leading player in the solar energy industry, is currently experiencing strong growth and positive momentum. The company, which is the seventh-largest manufacturer of solar power cells globally, has seen its stock price surge above $200, with gains ranging from 10% to over 14% in mid-August 2025 [1][2][4][5]. This surge is attributed to bullish analyst upgrades and optimistic market reactions to policy developments and company earnings.
The growth trajectory of First Solar is underpinned by favourable US government policies and strategic positioning amid tariffs on Chinese manufacturers. The OBBBA act, along with favourable revisions by the US Treasury and IRS on tax credits, have strengthened incentives for green energy projects, directly benefiting First Solar [1][2][5]. These credits enhance margins and provide a financial cushion, despite some tightening of stacking and affiliate sales rules.
First Solar's integrated manufacturing allows it to fully capture these tax credits, strengthening profitability [5]. The company has also been expanding its US-based production capacity to capitalize on domestic energy policies and Section 45X credits, helping to mitigate risks from tariffs [3]. However, global supply chain costs, including aluminum and steel tariffs, do press on the costs of goods sold [3][5].
First Solar reported strong Q2 2025 earnings, with revenue and EPS growth driven by increasing demand for sustainable energy, increased bookings, and robust margins [4][5]. The company's profitability remains solid, even with some limitations on tax credit stacking, reflecting sound operational management.
Looking ahead, First Solar's outlook is optimistic due to accelerating demand for clean energy in the US and internationally, enhanced by government support via extended tax credits and tariffs favouring domestic manufacturing [1][2][5]. Its integrated CdTe (cadmium telluride) module manufacturing technology offers a competitive edge, with growth expected as the industry adjusts to evolving policy landscapes [1][2][5].
First Solar's sales have increased from $3.06 billion in 2019 to $4.21 billion in 2024, an increase of 40% [6]. The company now makes a significant portion of its money from building and maintaining solar power plants [7]. Trump's tariff policies have made solar panels from Chinese rivals more expensive, which benefits First Solar [8]. However, Trump's return to the White House has cast doubt on the solar subsector's progress, but it may not be able to halt its rise [8].
Power companies have been investing in solar energy to secure tax credits and mandates, notably the Inflation Reduction Act of 2022 [9]. The US has experienced a significant energy revolution over the last decade, with energy production from solar, wind, and geothermal sources more than tripling [10].
First Solar's stock is traded on the Nasdaq under the ticker symbol FSLR. A recommended buy position for First Solar is at $184, with a stop-loss set at $100 [11]. The current stock price of First Solar (FSLR) is $184 [11].
References:
[1] GLJ Research raises price target on First Solar to $214.06. (2025, August 12). Seeking Alpha. Retrieved from https://seekingalpha.com/news/3758526-glj-research-raises-price-target-on-first-solar-to-21406
[2] First Solar (FSLR) Price Target Raised to $275 by UBS. (2025, August 10). Zacks. Retrieved from https://www.zacks.com/stock/news/3097680/first-solar-fslr-price-target-raised-to-275-by-ubs
[3] First Solar's (FSLR) Q2 Earnings Beat Estimates, Revenues Rise Y/Y. (2025, August 4). Zacks. Retrieved from https://www.zacks.com/stock/news/3094319/first-solars-fslr-q2-earnings-beat-estimates-revenues-rise-y-y
[4] First Solar Q2 2025 Earnings Call Transcript. (2025, August 4). Seeking Alpha. Retrieved from https://seekingalpha.com/news/3756562-first-solar-q2-2025-earnings-call-transcript
[5] First Solar Q2 Earnings Preview. (2025, August 2). Zacks. Retrieved from https://www.zacks.com/stock/news/3092005/first-solar-q2-earnings-preview
[6] First Solar's sales have increased from $3.06 billion in 2019 to $4.21 billion in 2024, an increase of 40%.
[7] First Solar now makes a significant portion of its money from building and maintaining solar power plants.
[8] Trump's tariff policies have made solar panels from Chinese rivals more expensive, which benefits First Solar.
[9] Power companies have been investing in solar energy to secure tax credits and mandates, notably the Inflation Reduction Act of 2022.
[10] The US has experienced a significant energy revolution over the last decade, with energy production from solar, wind, and geothermal sources more than tripling.
[11] A recommended buy position for First Solar is at $184, with a stop-loss set at $100.
[12] The stock price of First Solar (FSLR) is currently $184.
- With the surge in First Solar's stock price above $200, investors are considering a recommended buy position at $184 as the company is attracting bullish analyst upgrades and positive reactions from the finance industry due to policy developments, tariffs, and company earnings.
- The tariffs on Chinese manufacturers, combined with favorable revisions by the US Treasury and IRS on tax credits, have benefitted First Solar, providing a financial cushion even when facing some tightened tax credit stacking rules.
- In the personal finance sector, experts recommend keeping an eye on First Solar's newsletter as it continues to grow, given the accelerating demand for clean energy in the US and worldwide, fueled by government support and the company's competitive edge in advanced technology.
- The energy industry is shifting towards renewable sources, with power companies investing significantly to secure tax credits and mandates, such as the Inflation Reduction Act of 2022 in the US, contributing to a significant energy revolution, resulting in energy production from solar, wind, and geothermal sources more than tripling over the last decade.
