Was Jim Cramer Right About First Solar (FSLR) Stock?

Back in 2024, on May 14, Mad Money’s Jim Cramer emphasized that First Solar, Inc. (NASDAQ:FSLR), a profitable, American-made solar company, was the true beneficiary of the Biden administration’s decision to double tariffs on Chinese solar cells from 25% to 50% at the time. Here’s what he said back then:

"How about solar cells? The government raised tariffs on Chinese solar cells from 25 to 50% and the market reacted totally wrong. That’s right. The worst solar stocks, the money-losing home solar players that depend on those cheap Chinese panels, all rallied because they also have a huge short position. The memers bought anything with an outsized large short position. […] But there’s a real solar company, a made-in-the-USA solar company, First Solar, that’s the clear winner in this crazy market. The stock actually fell to an iffy buck. At these levels, First Solar sells for about nine times next year’s earnings estimates, with tremendous growth rate — and this is before we factor in the impact of the tariffs on some of their major competitors. Now I think it’s an out-and-out winner — part of the world where solar might be the dominant power solution by 2030."

Cramer's take was not accurate, as the stock only gained 3.21% over the past year despite his strong bullish stance.

First Solar, Inc. (NASDAQ:FSLR) manufactures American-made thin-film solar panels for large utility-scale energy projects and is a leader in domestic clean energy production. Cramer remains optimistic about solar stocks. Here’s what he said on the 28^th of January.

“It is a very inexpensive stock. I’m telling you, I’m still reeling from the fact that NXT, Nextracker… actually reported an upside surprise tonight. And… when I look into that and it says that it’s good for solar, I will tell people who belong to the Charitable Trust, to CNBC Investing Club, whether it’s time to get a little more aggressive on solar.”

While we acknowledge the potential of FSLR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than FSLR and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.