First Solar's Quantum Dot Partnership Drives 32% Price Increase Amid Revised Earnings Forecast

First Solar's stock price rose 32% in the last quarter due to its exclusive supply agreement with UbiQD, integrating fluorescent quantum dot technology into its panels. The company's updated earnings forecast and revised guidance painted a mixed picture, reflecting challenges amid market optimism. First Solar's collaboration and technological advancements added positive momentum, despite a largely flat market environment.

First Solar, Inc. (FSLR) experienced a significant 32% increase in its stock price during the last quarter, largely attributed to its exclusive supply agreement with UbiQD Inc. [1]. This partnership involves the integration of fluorescent quantum dot (QD) technology into First Solar's thin-film bifacial photovoltaic (PV) solar panels. The deal is expected to enhance the efficiency and performance of First Solar's solar modules, positioning the company competitively within the renewable energy sector.

The collaboration between First Solar and UbiQD was preceded by a joint development collaboration announced in 2023. The agreement, which is exclusive and multi-year, aims to supply UbiQD's QD technology to First Solar. According to Hunter McDaniel, founder and CEO of UbiQD, this is a turning point for the quantum dot industry, as it represents the first high-volume QD supply agreement outside of display technology [1]. The partnership is anticipated to increase UbiQD's annual production to above 100 metric tonnes.

First Solar's chief technical officer, Markus Gloeckler, noted that even small improvements in bifaciality can have a significant real-world impact on energy yield at utility-scale. The integration of quantum dot technology is expected to enhance the performance of First Solar's bifacial modules, which is crucial as solar producers compete globally on price and performance [1].

The recent share price increase of 32% brings First Solar closer to its consensus analyst price target of US$201.53, representing a discount of 13% from the target. This target implies an expectation for further growth, with analysts setting forecasts based on the company's expansion plans and industry positioning [2]. Investors may need to consider these growth projections and potential risks when evaluating First Solar's financial outlook.

Institutional investors have also shown interest in First Solar, with Mader & Shannon Wealth Management Inc. growing its position in the company by 38.3% during the first quarter. Other institutional investors and hedge funds, such as Larson Financial Group LLC and Princeton Global Asset Management LLC, have also increased their stakes in the company [3].

Despite the positive momentum, First Solar's updated earnings forecast and revised guidance painted a mixed picture. The company reported earnings per share of $1.95 for the quarter, missing analysts' consensus estimates of $2.50. However, revenue was up 6.4% year-over-year, indicating a positive trend in the company's performance [3].

First Solar's stock has been the subject of various analyst ratings. KeyCorp downgraded the stock to an "underweight" rating with a target price of $100.00, while Bank of America reduced its target price to $215.00 with a "buy" rating. Royal Bank of Canada raised its target price to $200.00 with an "outperform" rating. Jefferies Financial Group set a target price of $194.00 with a "buy" rating, and BMO Capital Markets reduced its target price to $187.00 with an "outperform" rating [3].

The overall sentiment towards First Solar's stock is "Moderate Buy" with an average target price of $228.87, indicating a generally positive outlook from analysts [3].

References:
[1] https://www.bisinfotech.com/ubiqd-first-solar-sign-long-term-quantum-dot-deal/
[2] https://simplywall.st/stocks/us/semiconductors/nasdaq-fslr/first-solar/news/first-solar-fslr-rises-32-in-last-quarter-amid-quantum-dot-t
[3] https://www.marketbeat.com/instant-alerts/filing-mader-shannon-wealth-management-inc-has-251-million-stake-in-first-solar-inc-nasdaqfslr-2025-07-21/