First Solar (FSLR) Rallied Following the Earnings Beat and Improved Guidance

Ariel Investments, an investment management company, released its “Ariel Global Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equities rallied in the third quarter, driven by AI enthusiasm, resilient corporate earnings, the first U.S. rate cut of the year, and targeted policy easing across key regions. Against this backdrop, the Ariel Global fund traded +4.99% higher in the quarter, compared to the +7.62% return of the MSCI ACWI Index and +6.13% 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 third-quarter 2025 investor letter, Ariel Global Fund highlighted stocks such as First Solar, Inc. (NASDAQ:FSLR). First Solar, Inc. (NASDAQ:FSLR) is a U.S.-based solar technology company. The one-month return of First Solar, Inc. (NASDAQ:FSLR) was 12.91%, and its shares gained 36.44% of their value over the last 52 weeks. On November 18, 2025, First Solar, Inc. (NASDAQ:FSLR) stock closed at $252.19 per share, with a market capitalization of $27.06 billion.

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

"First Solar, Inc. (NASDAQ:FSLR), a U.S.-based company that makes solar panels and the technology behind them, was the top contributor this quarter following an earnings beat and upward revision in full year guidance. July bookings suggest the company is regaining pricing power, while the Commerce Department’s Section 232 investigation into polysilicon could offer policy support that boosts pricing. Additionally, First Solar is nearing a strategic move to combine international front-end processing with domestic back-end assembly, which could enhance margins. As developers gain clarity on the safe harbor rules related to the One Big Beautiful Bill Act in the coming weeks, we expect FSLR’s contract activity to accelerate, especially as customers rush to lock in capacity and qualify 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, up from 52 in the previous quarter. In the third quarter of 2025, First Solar, Inc. (NASDAQ:FSLR) reported net sales of $1.6 billion, representing an increase of $0.5 billion compared to the prior 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 the list of best sustainability stocks to invest in. In addition, please check out our hedge fund investor letters Q3 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.