First Solar: Opportunities in Solar Power Driven by AI
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 22 2026
0mins
Source: Fool
- Significant Revenue Growth: First Solar's Q1 net sales reached $1.04 billion, a 24% year-over-year increase, primarily driven by heightened demand for solar modules, particularly from the AI sector, showcasing the company's competitive edge in a rapidly growing market.
- Strong Contract Backlog: The company boasts a 47.9-gigawatt contracted backlog, with expectations to sell 17.6 gigawatts by the 2026 midpoint, potentially generating $5.05 billion in revenue, which provides multiple years of high-growth revenue visibility and bolsters investor confidence.
- Notable Contribution from India: In Q1, First Solar sold approximately 1 gigawatt of energy to the Indian market, further solidifying its position in international markets, while also significantly enhancing U.S. production capabilities through 2028, demonstrating the company's commitment to future growth.
- Low Valuation: Despite achieving a 25.8% annualized revenue growth rate, First Solar's P/E ratio stands at just 16.5, significantly lower than peers like Enphase Energy at 51.1, indicating a market undervaluation of its future potential and providing a reasonable margin of safety for investors.
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Analyst Views on FSLR
Wall Street analysts forecast FSLR stock price to rise
23 Analyst Rating
18 Buy
4 Hold
1 Sell
Moderate Buy
Current: 233.060
Low
150.00
Averages
280.35
High
335.00
Current: 233.060
Low
150.00
Averages
280.35
High
335.00
About FSLR
First Solar, Inc. is a photovoltaic (PV) solar technology and manufacturing company. It is focused on enabling power generation needs with its advanced, thin film PV technology. The Company's primary segment is its modules business, which involves the design, manufacture, and sale of CdTe solar modules, which convert sunlight into electricity. Third-party customers of the segment include system developers, independent power producers, utilities, commercial and industrial companies, and other system owners and operators. The Company's products include the Series 7 Module and Series 6 Plus module. Its Series 6 Plus module is a glass laminate approximately 4ft x 6ft in size that encapsulates thin film PV semiconductor materials. Its Series 7 module has a larger form factor of approximately 4ft x 7ft in size. The Series 6 Plus and Series 7 modules had an average power output of 464 watts and 532 watts, respectively.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Notice of Class Action Lawsuit for First Solar Securities
- Class Action Deadline: Rosen Law Firm reminds investors who purchased First Solar (NASDAQ:FSLR) securities between February 26, 2025, and February 24, 2026, that they must apply to be lead plaintiff by August 24, 2026, to participate in the class action and potentially receive compensation.
- Lawsuit Background: The lawsuit alleges that First Solar made materially false and misleading statements during the class period, failing to disclose that its ability to manage the impact of U.S. tariff policies was overstated, resulting in investor losses when the truth emerged.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has achieved the largest settlement against a Chinese company, being ranked first in 2017 for the number of securities class action settlements, showcasing its expertise and success in this field.
- Investor Guidance: Investors are advised to carefully select law firms with proven success in leadership roles, avoiding those that merely act as intermediaries, to ensure effective legal representation and support in the class action process.
See More
Fluor Corp. and First Solar Show Active Options Trading
- Fluor Options Volume: Fluor Corp. has seen an options trading volume of 21,727 contracts today, representing approximately 2.2 million underlying shares, which accounts for 78.2% of its average daily trading volume over the past month, indicating heightened market interest in its future performance.
- Demand for Call Options: Notably, the $55 strike call option for Fluor has seen significant activity with 10,336 contracts traded today, equating to about 1.0 million shares, suggesting that investors are increasingly optimistic about the stock's potential upside.
- First Solar Options Activity: First Solar Inc. recorded an options trading volume of 15,825 contracts, representing approximately 1.6 million underlying shares, or 73% of its average daily trading volume over the past month, reflecting sustained market interest in its stock.
- Put Options Trading: For First Solar, the $230 strike put option has traded 3,125 contracts today, representing approximately 312,500 shares, indicating investor concerns regarding potential downside risks in its future stock price.
See More
Deutsche Bank Upgrades First Solar to Buy Amid Market Opportunities
- Upgrade Announcement: Deutsche Bank upgraded First Solar from Hold to Buy with a new price target of $272, up from $245, indicating a buying opportunity following a 27% decline since June 1.
- Policy Protection: Analyst Corinne Blanchard notes that increased anti-China sentiment and favorable U.S. policies provide additional protection for First Solar, with expectations of positive market momentum ahead of Section 232 policy clarifications.
- Strong Financials: First Solar boasts $2.1 billion in net cash, with Blanchard highlighting the company as a fundamentally strong choice for investors seeking U.S.-based panel manufacturers, reflecting its solid financial health.
- Market Dynamics: Despite the upgrade, solar stocks generally fell on Tuesday due to rising interest rates and increased inflation expectations, which diminish the likelihood of Federal Reserve rate cuts, impacting solar projects that often rely on debt financing.
See More
Cognizant Expands Google Cloud Partnership Amid Tech Stock Volatility
- Cognizant Partnership Expansion: Cognizant Technology Solutions saw its stock rise over 6% after announcing an expansion of its partnership with Google Cloud, aimed at accelerating enterprise adoption of Gemini AI, thereby enhancing its competitive edge in the rapidly evolving AI market.
- USA Rare Earth Inquiry Intensifies: USA Rare Earth shares dropped more than 7% following a Wall Street Journal report that Democratic lawmakers are expanding their inquiry into the government's $1.6 billion investment, seeking information on potential conflicts of interest involving Commerce Secretary Howard Lutnick, which could impact the company's reputation and future financing capabilities.
- Adobe Stock Surge: Despite Bank of America downgrading Adobe to underperform, the stock rose over 5%, indicating market confidence in its long-term growth potential, although analysts warned that generative AI could increase competitive pressures on the company.
- Rivian's Significant Decline: Rivian's stock plummeted 14% after announcing a sale of 75 million new shares for a major capital raise, even though its revenue and delivery guidance exceeded market expectations, raising investor concerns about future growth prospects.
See More
Key Wall Street Rating Updates on Tuesday
- Deutsche Bank Upgrade: Deutsche Bank upgraded First Solar from hold to buy, citing its compelling fundamentals and strong balance sheet, making it an attractive option for investors in the U.S. panel production sector.
- TD Cowen Initiations: TD Cowen initiated coverage on US Foods, Chefs' Warehouse, and Performance Foods with buy ratings, projecting USFD to achieve 5% revenue growth and 20% EPS growth in the medium term, highlighting its diversified exposure to high-margin subsegments.
- Morgan Stanley on Kingsoft Cloud: Morgan Stanley initiated Kingsoft Cloud as overweight, noting its successful transition from a mid-tier cloud player to an AI cloud provider, with accelerating revenue and improving profitability supported by Xiaomi and Kingsoft Group's ecosystem.
- Goldman Sachs on Rentokil: Goldman Sachs upgraded Rentokil from neutral to buy, expecting steady improvement in organic growth in pest services, aiming for mid-single-digit organic growth by 2027 as the company's growth strategy takes effect.
See More
Fiserv Discusses Sale of Payments Business with Major Banks
- Stock Surge: Fiserv shares rallied over 5% after The Wall Street Journal reported discussions with major banks like JPMorgan and Bank of America regarding the sale of its payments infrastructure business, potentially leading to strategic restructuring and enhanced market competitiveness.
- Acquisition Deal: Vertex Pharmaceuticals announced a $10 billion acquisition of Crinetics Pharmaceuticals to expand its product line in rare hormonal disease treatments, although Vertex shares dipped nearly 1%, this deal is expected to strengthen its market position.
- Stock Upgrade: First Solar's stock rose nearly 3% after Deutsche Bank upgraded its rating from neutral to buy, with analysts citing potential trade policy shifts as a reason for investors to buy the dip, boosting market confidence.
- EV Stock Decline: Rivian shares tumbled 9% despite revenue and delivery guidance exceeding market expectations, as the company announced a plan to sell 75 million new shares for a significant capital raise, negatively impacting investor sentiment.
See More
Notice of Class Action Lawsuit for First Solar Securities
- Class Action Deadline: Rosen Law Firm reminds investors who purchased First Solar (NASDAQ:FSLR) securities between February 26, 2025, and February 24, 2026, that they must apply to be lead plaintiff by August 24, 2026, to participate in the class action and potentially receive compensation.
- Lawsuit Background: The lawsuit alleges that First Solar made materially false and misleading statements during the class period, failing to disclose that its ability to manage the impact of U.S. tariff policies was overstated, resulting in investor losses when the truth emerged.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has achieved the largest settlement against a Chinese company, being ranked first in 2017 for the number of securities class action settlements, showcasing its expertise and success in this field.
- Investor Guidance: Investors are advised to carefully select law firms with proven success in leadership roles, avoiding those that merely act as intermediaries, to ensure effective legal representation and support in the class action process.
See More
Fluor Corp. and First Solar Show Active Options Trading
- Fluor Options Volume: Fluor Corp. has seen an options trading volume of 21,727 contracts today, representing approximately 2.2 million underlying shares, which accounts for 78.2% of its average daily trading volume over the past month, indicating heightened market interest in its future performance.
- Demand for Call Options: Notably, the $55 strike call option for Fluor has seen significant activity with 10,336 contracts traded today, equating to about 1.0 million shares, suggesting that investors are increasingly optimistic about the stock's potential upside.
- First Solar Options Activity: First Solar Inc. recorded an options trading volume of 15,825 contracts, representing approximately 1.6 million underlying shares, or 73% of its average daily trading volume over the past month, reflecting sustained market interest in its stock.
- Put Options Trading: For First Solar, the $230 strike put option has traded 3,125 contracts today, representing approximately 312,500 shares, indicating investor concerns regarding potential downside risks in its future stock price.
See More
Deutsche Bank Upgrades First Solar to Buy Amid Market Opportunities
- Upgrade Announcement: Deutsche Bank upgraded First Solar from Hold to Buy with a new price target of $272, up from $245, indicating a buying opportunity following a 27% decline since June 1.
- Policy Protection: Analyst Corinne Blanchard notes that increased anti-China sentiment and favorable U.S. policies provide additional protection for First Solar, with expectations of positive market momentum ahead of Section 232 policy clarifications.
- Strong Financials: First Solar boasts $2.1 billion in net cash, with Blanchard highlighting the company as a fundamentally strong choice for investors seeking U.S.-based panel manufacturers, reflecting its solid financial health.
- Market Dynamics: Despite the upgrade, solar stocks generally fell on Tuesday due to rising interest rates and increased inflation expectations, which diminish the likelihood of Federal Reserve rate cuts, impacting solar projects that often rely on debt financing.
See More
Cognizant Expands Google Cloud Partnership Amid Tech Stock Volatility
- Cognizant Partnership Expansion: Cognizant Technology Solutions saw its stock rise over 6% after announcing an expansion of its partnership with Google Cloud, aimed at accelerating enterprise adoption of Gemini AI, thereby enhancing its competitive edge in the rapidly evolving AI market.
- USA Rare Earth Inquiry Intensifies: USA Rare Earth shares dropped more than 7% following a Wall Street Journal report that Democratic lawmakers are expanding their inquiry into the government's $1.6 billion investment, seeking information on potential conflicts of interest involving Commerce Secretary Howard Lutnick, which could impact the company's reputation and future financing capabilities.
- Adobe Stock Surge: Despite Bank of America downgrading Adobe to underperform, the stock rose over 5%, indicating market confidence in its long-term growth potential, although analysts warned that generative AI could increase competitive pressures on the company.
- Rivian's Significant Decline: Rivian's stock plummeted 14% after announcing a sale of 75 million new shares for a major capital raise, even though its revenue and delivery guidance exceeded market expectations, raising investor concerns about future growth prospects.
See More
Key Wall Street Rating Updates on Tuesday
- Deutsche Bank Upgrade: Deutsche Bank upgraded First Solar from hold to buy, citing its compelling fundamentals and strong balance sheet, making it an attractive option for investors in the U.S. panel production sector.
- TD Cowen Initiations: TD Cowen initiated coverage on US Foods, Chefs' Warehouse, and Performance Foods with buy ratings, projecting USFD to achieve 5% revenue growth and 20% EPS growth in the medium term, highlighting its diversified exposure to high-margin subsegments.
- Morgan Stanley on Kingsoft Cloud: Morgan Stanley initiated Kingsoft Cloud as overweight, noting its successful transition from a mid-tier cloud player to an AI cloud provider, with accelerating revenue and improving profitability supported by Xiaomi and Kingsoft Group's ecosystem.
- Goldman Sachs on Rentokil: Goldman Sachs upgraded Rentokil from neutral to buy, expecting steady improvement in organic growth in pest services, aiming for mid-single-digit organic growth by 2027 as the company's growth strategy takes effect.
See More
Fiserv Discusses Sale of Payments Business with Major Banks
- Stock Surge: Fiserv shares rallied over 5% after The Wall Street Journal reported discussions with major banks like JPMorgan and Bank of America regarding the sale of its payments infrastructure business, potentially leading to strategic restructuring and enhanced market competitiveness.
- Acquisition Deal: Vertex Pharmaceuticals announced a $10 billion acquisition of Crinetics Pharmaceuticals to expand its product line in rare hormonal disease treatments, although Vertex shares dipped nearly 1%, this deal is expected to strengthen its market position.
- Stock Upgrade: First Solar's stock rose nearly 3% after Deutsche Bank upgraded its rating from neutral to buy, with analysts citing potential trade policy shifts as a reason for investors to buy the dip, boosting market confidence.
- EV Stock Decline: Rivian shares tumbled 9% despite revenue and delivery guidance exceeding market expectations, as the company announced a plan to sell 75 million new shares for a significant capital raise, negatively impacting investor sentiment.
See More
