First Solar's $370M Volume Surges 35.9% Amid Solar Sector Rally Trails Top Peers

On September 2, 2025, First Solar (FSLR) edged up 0.30% to $196.00, with a trading volume of $370 million, marking a 35.9% surge from the previous day’s activity. The stock’s performance aligns with a broader upward trend in the solar sector, though it trails some peers like Array Technologies and SolarEdge, which have seen sharper gains in recent weeks.

Analyst sentiment remains cautiously optimistic, with 28 Wall Street firms assigning a “Moderate Buy” consensus rating. The average 12-month price target stands at $225.84, implying a potential 15.36% upside from current levels. Recent upgrades from firms like UBS, BMO, and Susquehanna highlight confidence in FSLR’s long-term growth, driven by its expanding manufacturing capacity and robust order backlog of 61.9 GW in contracts through 2030.

First Solar’s second-quarter results bolstered investor sentiment, with earnings of $3.18 per share surpassing estimates and sales of $1.1 billion exceeding guidance. Management revised its 2025 sales forecast upward to $4.9–$5.7 billion, reflecting strong demand for its cadmium telluride solar modules. The company plans to invest $1–$1.5 billion this year to expand production, targeting 25 GW of annual capacity by 2026.

Risks persist, however. Chinese solar module oversupply continues to pressure pricing, and new U.S. legislation phases out residential solar tax credits by 2025, potentially dampening demand. Analysts caution that FSLR’s forward price-to-sales ratio of 3.54X, higher than the industry average of 1.23X, may limit near-term upside if market conditions deteriorate.

Backtest results indicate FSLR’s stock has historically delivered an average annualized return of 33.4% over five years, outpacing the solar industry’s 22.9%. The stock’s beta of 1.48 suggests heightened volatility relative to the broader market, with a recent 30-day return of 3.6% compared to the S&P 500’s 2.3%.