First Solar Surges 9.69% on Revised U.S. Tax Credits Ranks 25th in $2.06B Turnover

On August 18, 2025, First Solar (FSLR) surged 9.69% to close at $219.32, driven by renewed optimism in the solar sector following revised U.S. clean energy tax credit guidelines. The stock ranked 25th in trading volume with $2.06 billion in turnover, reflecting heightened investor interest.

Recent technical developments bolstered the rally. FSLR crossed above its 20-day moving average, a key indicator for short-term momentum. Analysts noted the move aligns with positive earnings estimate revisions, including 10 upward adjustments for the current fiscal year. However, the Zacks Rank #3 rating suggests a cautious outlook, balancing technical strength with valuation considerations.

The catalyst for the sharp move emerged as the Treasury Department and IRS released updated rules for clean energy tax credits. The revised "physical work test" for utility-scale solar projects eased policy uncertainties that had constrained the sector for over a year. UBS analysts upgraded First Solar to a top pick, citing reduced regulatory risk and growth potential. This contrasts with earlier volatility, including a 3.2% drop on July 2025 PPI data that highlighted inflationary pressures.

Strategic analysis of high-volume stocks from 2022 to 2025 shows a 1-day average return of 0.98% for the top 500 volume-driven positions. Over 365 days, the strategy yielded a total return of 31.52%, illustrating the mixed impact of short-term momentum and market timing risks in capturing trading opportunities.