This Solar Energy Stock is a Favorite Among Billionaire Investors

With 15 billionaire investors in the Insider Monkey database at the end of Q1 2025, First Solar, Inc. (NASDAQ:FSLR) is included among The 5 Energy Stocks Billionaires are Quietly Piling Into.

First Solar, Inc. (NASDAQ:FSLR) is a leading American solar technology company and global provider of responsibly produced, eco-efficient solar modules. FSLR is the largest solar manufacturer in the U.S. and the entire Western Hemisphere.

First Solar, Inc. (NASDAQ:FSLR) is unique among the ten largest solar manufacturers in the world for being the only US-based company and not manufacturing in China. The company has invested billions to expand its domestic manufacturing base and expects to reach over 14 GW of nameplate capacity in the U.S. by 2026. This strategic move has helped First Solar significantly during the recent global trade war and provides greater certainty of delivery and pricing compared to its peers.

Another factor that sets First Solar, Inc. (NASDAQ:FSLR) apart from its competitors is its innovation-driven culture, and the company is known for manufacturing a proprietary, advanced thin-film module. Its solar panels are cost-effective, high-quality, and perform better than competing silicon modules in tough conditions, making them ideal for utility-scale solar energy projects. Moreover, being the only fully vertically integrated solar manufacturer in the country, First Solar can go from raw materials to finished product in less than four hours.

That said, First Solar, Inc. (NASDAQ:FSLR), like the rest of its peers in the solar sector, is highly dependent on the clean energy tax credits from the Biden-era Inflation Reduction Act. These subsidies represent a considerable chunk of the company’s income and have been a major driving factor behind its rapid growth. However, with the passage of President Trump’s sweeping tax and spending bill, these credits will be phased out much sooner than expected, marking a significant headwind for First Solar and the rest of the industry in the coming years.

Despite the uncertainty, First Solar, Inc. (NASDAQ:FSLR) has a number of billionaires piling into it. A major shareholder, D E Shaw, significantly increased his stake in the company to around $236.5 million at the end of Q1 2025.

If you are curious about the current state of the global energy industry and its top performers according to billionaires, take a look at the complete video here.

While we acknowledge the potential of FSLR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.