Investor risk sentiment paused at the start of the week, as markets awaited details expected to emerge later when President Donald Trump meets with Ukrainian President Volodymyr Zelenskyy and European leaders.

After reaching an important support level, First Solar (FSLR) could be a good stock pick from a technical perspective. FSLR surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.

The solar industry has struggled mightily for years to achieve meaningful growth and post net profits. During the Biden administration, the green energy sector as a whole received something of a break in the 2022 Inflation Reduction Act, with a slew of tax incentives for building out alternative-energy solutions.

First Solar is a buy due to its strong U.S. manufacturing base, national security benefits, and limited reliance on Chinese inputs. FSLR's valuation is attractive, with low PE ratios and a conservative DCF model indicating undervaluation despite sector headwinds. Domestic policy, including tariffs and incentives benefits First Solar, though political uncertainty and China's dominance remain risks. Some domestic policies may disfavor First Solar as well, however.

FSLR's risk-reward profile is a lot more compelling upon the clarity from One Big Beautiful Bill, with the 45x tax credits likely to sustain its rich profit margins. This is on top of the strategic monetization from the tax credit transfers, allowing the management to fund the ongoing capex expansions in the US. Combined with the discounted valuations, healthy balance sheet, & FQ2'25 new bookings, we can understand why the stock has recorded rich recoveries since the April 2025 bottom.

First Solar is expanding capacity to 25GW by 2027, leveraging vertical integration and innovative CdTe technology to maintain US solar leadership. IRA 45X tax credits and US trade protection shield First Solar from Chinese competition, supporting margins and long-term profitability. Key risks include potential US solar price erosion and policy shifts favoring fossil fuels, which could impact demand and margins.

First Solar (FSLR) Q2 Revenue Jumps 9%

First Solar (FSLR) was one of the best-performing stocks in the S&P 500 Friday after the company posted stronger-than-expected earnings and raised its 2025 sales outlook.

First Solar, Inc. (NASDAQ:FSLR ) Q2 2025 Earnings Conference Call July 31, 2025 4:30 PM ET Company Participants Alexander R. Bradley - Chief Financial Officer Byron Michael Jeffers - VP, Treasurer & Head of Investor Relations Mark R.

First Solar raised its annual sales forecast on Thursday, as the U.S. solar panel maker expects higher prices for its products following additional tariffs on foreign-made panels.