First Solar (FSLR) Surges 8.9% on Analyst Upgrades, U.S. Production Expansion and Policy-Driven Demand

First Solar Inc. (FSLR) surged 8.9% on October 15, reaching a level unseen since October 2025, with intraday gains peaking at 10.52%. The rally reflects renewed investor optimism amid strategic momentum and institutional backing.

The stock’s ascent was fueled by a wave of analyst upgrades and elevated price targets from major investment banks. Citigroup raised its target to $300, Bank of America to $254, and BMO Capital to $261, citing First Solar’s expansion of U.S. production capacity and robust demand for its solar panels. Analysts highlighted that the company’s domestic manufacturing facilities are fully booked through 2028, underscoring long-term scalability and pricing power.

Strategic expansion in U.S. manufacturing aligns with national clean energy priorities, reducing reliance on foreign imports. This move has positioned First Solar as a key beneficiary of policy-driven demand, particularly as utility-scale projects prioritize domestic suppliers. Advanced photovoltaic technology further strengthens its competitive edge in a sector poised for growth.

While the recent surge signals strong institutional confidence, the stock’s volatility remains a cautionary note. Historically, FSLR has experienced frequent price swings exceeding 5% in a single year, reflecting its sensitivity to macroeconomic shifts and sector-specific risks. Analysts caution that execution on expansion plans and regulatory developments will be critical in sustaining momentum.

Investor sentiment is also shaped by broader industry trends, including global renewable energy adoption and post-pandemic supply chain realignments. These factors have amplified demand for U.S.-made solar solutions, indirectly boosting First Solar’s market position. However, competition from global players and capital-intensive growth projects remain potential headwinds.