First Solar Surges 1.05% on Alphabet's $4.75B Power Acquisition, Volume Dives to 144th Rank

Market Snapshot

, 2025, despite a sharp decline in trading volume. , ranking 144th in market activity. This performance occurred amid a shortened trading session for the U.S. holiday, with markets closing early at 1:00 p.m. ET. While the price gain was modest, the volume contraction highlighted reduced liquidity, a common feature in high-beta stocks during holiday weeks.

Key Drivers

The most significant catalyst for First Solar’s recent volatility was Alphabet Inc.’s $4.75 billion acquisition of Intersect Power, a major energy infrastructure provider. The deal, announced on December 22, 2025, aims to expand Google’s power generation capacity to support its data centers. Intersect had previously entered a 2.4 gigawatt (GW) direct current (DC) supply agreement with First Solar for solar modules to be deployed in U.S. projects from 2024 to 2027. This connection positioned First Solar as a key beneficiary of the transaction, as Alphabet’s investment in energy infrastructure reinforced the demand for clean power to fuel AI-driven data centers. Analysts noted that the acquisition validated First Solar’s role in the “AI power” narrative, linking its long-term backlog to the growing need for renewable energy in the tech sector.

First Solar’s business model also benefited from its vertically integrated domestic manufacturing and thin-film photovoltaic (PV) technology. The company’s U.S.-based production, which avoids reliance on Chinese crystalline silicon supply chains, aligns with policy-driven incentives such as the for domestic manufacturing. These credits, , bolstered the company’s profitability and provided a competitive edge amid trade tensions. Additionally, , which began production in July 2025, , . This expansion reinforced investor confidence in the company’s ability to meet surging demand while maintaining margins.

Market dynamics, however, introduced short-term volatility. , , . This pullback was attributed to profit-taking and valuation concerns, . Analysts noted that the market’s optimism had already priced in significant tailwinds, making the stock susceptible to corrections when incremental news failed to justify elevated valuations. , leading to exaggerated intraday moves and cautious positioning among traders.

Looking ahead, . The latter will provide insights into shipment cadence, average selling prices, and the impact of contract disputes, . Additionally, evolving trade policies and domestic content rules could reshape the competitive landscape, with First Solar likely to benefit from continued protectionist measures. Analysts remain divided on long-term targets, , reflecting divergent views on policy durability and execution risks.

In conclusion, First Solar’s stock performance reflects its strategic positioning at the intersection of clean energy and AI infrastructure. While near-term volatility is inevitable given its high-beta profile and dependence on policy and execution risks, the company’s domestic manufacturing advantages and long-dated backlog position it as a key player in the U.S. energy transition. Investors will closely monitor the Alphabet-Intersect integration, manufacturing ramps, and regulatory developments to assess the sustainability of its growth trajectory.