First Solar's 50.46% Trading Volume Surge Propels 227th Liquidity Rank Amid U.S. Policy Shifts

On July 31, 2025, First Solar (FSLR.O) reported a trading volume of $620 million, reflecting a 50.46% increase from the previous day and ranking 227th in market liquidity. Despite a 2.46% decline in share price, the company’s strategic positioning in the solar manufacturing sector has drawn renewed attention due to evolving U.S. trade policies.

Recent developments, including President Donald Trump’s tax-and-spending legislation, have reshaped the industry landscape. The policy, which phases out solar and wind tax credits by 2028, has simultaneously spurred demand for domestically produced panels and prompted U.S. manufacturers to advocate for tariffs on imports from Indonesia, India, and Laos. First Solar’s CEO highlighted that these measures have strengthened the company’s competitive edge, particularly as its U.S.-based manufacturing capabilities align with growing demand for localized clean energy solutions. The firm has raised its 2025 net sales forecast to $4.9–$5.7 billion, exceeding prior guidance of $4.5–$5.5 billion.

Analysts have noted that while First Solar benefits from higher pricing driven by trade barriers, challenges persist. Reduced capacity utilization at overseas facilities and a shift toward lower-margin markets could weigh on margins. Nevertheless, the company’s robust project pipeline and strong balance sheet position it to capitalize on long-term growth opportunities. Recent analyst upgrades, including price targets raised by major institutions, underscore confidence in its execution potential amid a volatile regulatory environment.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present. This outperformed the benchmark return of 29.18%, generating an excess return of 137.53%. The success is attributed to capturing momentum driven by high liquidity, as seen in stocks with significant volume surges. However, the approach’s reliance on evolving market dynamics suggests future performance may vary with changes in liquidity concentration.