First Solar Surges 5.44% on Intraday Rally: What's Fueling the Momentum?

Summary
• First Solar (FSLR) surges 5.44% to $281.515, nearing its 52-week high of $284.32
• Intraday range spans $265.65 to $284.32, reflecting aggressive buying pressure
• Google’s $4.75B acquisition of Intersect Power cited as catalyst for FSLR’s rally

First Solar’s intraday surge has captured market attention, with the stock trading at its highest level since December 2025. The move follows news of Google’s acquisition of Intersect Power, a major customer of First Solar’s solar panels. With the stock nearing its 52-week high and a 22.51 P/E ratio, investors are weighing whether this is a breakout or a pre-deadline sprint under the Inflation Reduction Act’s 2026 tax credit cliff.

Google's $4.75B Acquisition of Intersect Power Ignites FSLR Rally
First Solar’s 5.44% intraday surge is directly tied to Google’s $4.75 billion acquisition of Intersect Power, a key buyer of First Solar’s thin-film solar panels. Intersect has placed multi-gigawatt orders for First Solar’s modules to power data centers and green hydrogen projects. The deal, which includes Google’s existing minority stake, signals sustained demand for First Solar’s products in the AI and cloud infrastructure sectors. Analysts at Goldman Sachs and BMO have raised price targets, citing the acquisition as a validation of First Solar’s strategic positioning in the U.S. solar market.

Solar Sector Gains Momentum as FSLR Outpaces Peers
The solar sector is rallying on policy tailwinds, with First Solar outperforming peers like Enphase Energy (ENPH, +1.20%) and SunPower (SPWR, -2.01%). FSLR’s 5.44% gain contrasts with Canadian Solar (CSIQ, +14.37%) and JinkoSolar (JKS, +3.30%), highlighting its premium positioning in U.S. manufacturing. The sector’s 30% YTD rally in the ALPS Clean Energy ETF (ACES) is fueled by the 2026 tax credit deadline, with FSLR’s production expansion aligning with the race to complete projects before incentives expire.

Options and ETFs to Capitalize on FSLR’s Bullish Momentum
• 200-day MA: $189.59 (well below current price)
• RSI: 52.40 (neutral)
• MACD: 2.099 (bullish divergence)
• Bollinger Bands: 247.25–273.62 (price near upper band)
• Gamma: 0.0241–0.0300 (high sensitivity to price moves)
• Theta: -0.6986–-2.2293 (accelerating time decay)

FSLR’s technicals suggest a continuation of its bullish trend, with key support at $247.25 and resistance at $273.62. The stock’s proximity to its 52-week high and strong gamma in options indicate potential for a breakout. For leveraged exposure, consider the ALPS Clean Energy ETF (ACES), which has surged 30% YTD and holds FSLR at 5.55%.

Top Options:
• FSLR20251226C285
- Type: Call
- Strike: $285
- Expiry: 2025-12-26
- IV: 49.42% (moderate)
- LVR: 56.30% (high leverage)
- Delta: 0.4306 (moderate sensitivity)
- Theta: -1.6067 (rapid decay)
- Gamma: 0.0241 (high sensitivity)
- Turnover: $278,147
- Payoff (5% upside): $16.58 (max(0, 295.84 - 285))
- IV (49.42%) indicates moderate volatility expectations; LVR (56.30%) offers high leverage for a short-term breakout.
- This contract stands out for its high leverage and gamma, ideal for a potential breakout above $285.

• FSLR20251226C280
- Type: Call
- Strike: $280
- Expiry: 2025-12-26
- IV: 44.90% (moderate)
- LVR: 41.70% (balanced leverage)
- Delta: 0.5552 (strong directional bias)
- Theta: -1.8286 (accelerating decay)
- Gamma: 0.0267 (high sensitivity)
- Turnover: $548,538
- Payoff (5% upside): $25.84 (max(0, 295.84 - 280))
- Delta (0.5552) provides strong directional bias; Gamma (0.0267) ensures sensitivity to price moves.
- This contract offers balanced leverage and liquidity, making it a core position for a sustained rally.

Action: Aggressive bulls should buy FSLR20251226C285 if $285 breaks, while core positions in FSLR20251226C280 offer balanced exposure. Watch for a close above $285 to confirm the breakout.

Backtest First Solar Stock Performance
The backtest of First Solar's (FSLR) performance following a 5% intraday surge from 2022 to the present shows impressive results. The strategy achieved an 186.80% return, significantly outperforming the benchmark, which gained 42.97%. The excess return was 143.83%, indicating that the surge led to substantial gains. The strategy's CAGR was 30.80%, and it maintained a high Sharpe ratio of 0.54, suggesting good risk-adjusted returns. However, the maximum drawdown was 0.00%, which indicates that there was no significant downside risk during this period.

Bullish Momentum Unlikely to Subside: Position for FSLR's Next Move
First Solar’s 5.44% rally reflects a confluence of production scalability, analyst upgrades, and sector momentum. With the stock trading near its 52-week high and a 30% YTD rally in ACES amplifying solar sector optimism, the key question is whether this is a pre-deadline sprint under the 2026 tax credit cliff or the start of a new bull cycle. Technicals favor continuation, with RSI at 52.40 and gamma at 0.0241–0.0300 suggesting strong price sensitivity. Investors should monitor FSLR’s ability to hold above $285 and watch for a 200-day MA crossover ($189.59) as a long-term bullish signal. For now, the FSLR20251226C285 and FSLR20251226C280 options offer high-leverage plays on a potential breakout. Meanwhile, Enphase Energy (ENPH, +1.20%) remains a sector leader to watch for comparative momentum.