Here's Why Ariel Global Fund Initiated a Position in First Solar (FSLR)

Ariel Investments, an investment management company, released its “Ariel Global Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter marked a period of extremes. The stocks fell after the “Liberation Day” tariff announcement in early April and rebounded following the pause in tariff implementation. Enthusiasm for artificial intelligence (AI) themed stocks and robust corporate earnings results lifted global and U.S. indices to new highs. Against this backdrop, the Ariel Global fund traded +7.38% higher in the quarter, compared to the +11.53% return of the MSCI ACWI Index and +5.84% return of the MSCI ACWI Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Ariel Global Fund highlighted stocks such as First Solar, Inc. (NASDAQ:FSLR). First Solar, Inc. (NASDAQ:FSLR) is a solar technology company. The one-month return of First Solar, Inc. (NASDAQ:FSLR) was -0.58%, and its shares lost 15.12% of their value over the last 52 weeks. On September 16, 2025, First Solar, Inc. (NASDAQ:FSLR) stock closed at $205.25 per share, with a market capitalization of $22.01 billion.

Ariel Global Fund stated the following regarding First Solar, Inc. (NASDAQ:FSLR) in its second quarter 2025 investor letter:

"We also added First Solar, Inc. (NASDAQ:FSLR), a U.S.-based photovoltaic solar technology and manufacturing company. As the only US based solar module manufacturer of scale, we believe the company stands to benefit from growing AI power demands as well as “America First” energy policy tailwinds. As of today, FSLR is sold out through 2026. However, as the final Inflation Reduction Act rules become clearer, we believe FSLR’s contract wins should accelerate, particularly as developers seek to secure as much capacity as possible to pre qualify modules for subsidies before they expire."

First Solar, Inc. (NASDAQ:FSLR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 68 hedge fund portfolios held First Solar, Inc. (NASDAQ:FSLR) at the end of the second quarter, compared to 52 in the previous quarter. While we acknowledge the potential of First Solar, Inc. (NASDAQ: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.

In another article, we covered First Solar, Inc. (NASDAQ:FSLR) and shared some of the most undervalued solar stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.