First Solar (NASDAQ:FSLR) has recently seen a surge in its stock price, climbing over 30% in just a few days. This increase was driven by two key pieces of news that have put the company in the spotlight.
First, UBS (NYSE:UBS) identified First Solar as a major beneficiary of the growing demand for electricity driven by AI technology. As AI applications continue to require more energy, companies like First Solar are poised to benefit from the increased need for sustainable power sources.
Secondly, China announced its support for the solar industry by cracking down on companies selling solar equipment at below-cost prices. This move is expected to help stabilize the market and boost the profitability of established solar companies like First Solar.
Analysts are also bullish on First Solar, with UBS raising its price target to $270 and Piper Sandler increasing theirs to $219. JPMorgan and Susquehanna have also raised their price targets, citing the company’s potential to capitalize on the growing demand for renewable energy.
Despite the positive outlook from analysts, there is still some downside risk for investors, with the average price target suggesting a 14.5% decrease from the current market price. However, given First Solar’s cheap valuation and strong positioning in the renewable energy market, the company remains an attractive investment opportunity for those looking to capitalize on the rise of AI technology and the increasing demand for electricity.