First Solar, Inc. (FSLR): A Bull Case Theory

We came across a bullish thesis on First Solar, Inc. on Stock Analysis Compilation’s Substack. In this article, we will summarize the bulls’ thesis on FSLR. First Solar, Inc.'s share was trading at $180.72 as of July 24^th. FSLR’s trailing and forward P/E were 15.27 and 11.86, respectively according to Yahoo Finance.

First Solar, Inc. (FSLR), a U.S.-based photovoltaic solar technology and manufacturing company, is uniquely positioned to capitalize on the rising energy demands driven by AI infrastructure growth and supportive “America First” energy policies. As the only U.S. solar module manufacturer operating at scale, FSLR benefits from structural tailwinds favoring domestic production, with its sales already fully booked through 2026.

Demand momentum is expected to build further as developers rush to secure capacity that qualifies for subsidies ahead of the expiration of key provisions under the Inflation Reduction Act (IRA). Clarity on final IRA rules is anticipated to accelerate contract wins, providing additional visibility and backlog security. FSLR’s positioning as the go-to domestic supplier, coupled with its technological expertise, makes it a prime beneficiary of policy-driven reshoring and the surge in utility-scale solar projects catering to the rapidly expanding AI data center ecosystem.

This demand pull-through is underpinned by the urgent need to meet soaring energy consumption with renewable generation, reinforcing FSLR’s long-term growth trajectory. The company’s solid backlog, strong policy support, and strategic market leadership offer investors a high degree of revenue certainty, with upside potential as further contracts are secured under favorable subsidy terms.

As AI-driven electricity consumption accelerates, FSLR’s unique scale and subsidy-qualified pipeline position it to capture outsized market share, offering an attractive risk/reward profile. Together, these dynamics create a compelling investment case supported by structural growth, policy-driven advantages, and near-term catalysts that enhance earnings visibility and reinforce the company’s strategic importance in the U.S. energy transition.

Previously, we covered a bullish thesis on First Solar, Inc. (FSLR) by Oliver | MMMT Wealth in April 2025, which highlighted FSLR’s CdTe technology, insulation from Chinese supply chains, and benefits from U.S. protectionist trade policies. The company’s stock price has appreciated by approximately 39% since our coverage. This is because the thesis played out with policy support and demand tailwinds. Stock Analysis Compilation shares a similar view but emphasizes AI-driven energy demand and IRA subsidies as key growth catalysts.

First Solar, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held FSLR at the end of the first quarter which was 65 in the previous quarter. 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.