First Solar Stock Jumps 18% in 2025 Amid AI Energy Boom – Is $251.75 the New Peak?

Colin is an Associate Editor specializing in technology and financial markets. With over three years of expertise in editing and fact-checking financial news, he holds an M.A. in Journalism from The New School and a B.A. in History and Political Science from McGill University.

Highlights to Know

• First Solar led the S&P 500 gains for the second day in a row after UBS analysts raised the stock’s price target, emphasizing its role as a key beneficiary of AI-driven energy demand.
• Top tech firms like Microsoft and Amazon are turning to renewable energy providers like First Solar to power AI data centers while meeting aggressive carbon neutrality goals.
• The Inflation Reduction Act’s tax incentives further enhance First Solar’s growth prospects.

In 2024, First Solar (FSLR) has emerged as a standout performer in the S&P 500, climbing more than 18% in a single session to close at $251.75. This surge follows UBS analysts’ assertion that the company is uniquely positioned to capitalize on the skyrocketing energy needs of AI-powered data centers.

Jon Windham and his UBS team highlighted First Solar as an often-overlooked direct beneficiary of soaring electricity demand driven by AI advancements.

AI technologies demand immense power, and major tech giants such as Microsoft, Amazon, and Alphabet are committed to achieving carbon neutrality. Microsoft's 2023 carbon emissions rose by 29% compared to 2020, largely due to expanding AI infrastructure.

To uphold '100% Renewable' energy policies, these tech leaders enter into Power Purchase Agreements (PPAs) with renewable energy suppliers like First Solar, boosting demand for clean solar power.

As one of the United States’ largest solar technology companies, First Solar stands to gain significantly, especially with anticipated growth in domestic market share. UBS forecasts that AI investments, heightened U.S. protectionism, and supportive tax credits from the Inflation Reduction Act could elevate First Solar’s earnings per share from $7.74 in 2023 to nearly $37 by 2027.

Piper Sandler analysts also raised their price target for First Solar from $195 to $219, reflecting growing investor confidence.

Since the beginning of 2024, First Solar shares have climbed over 46%, highlighting strong momentum amid the global shift toward sustainable energy solutions powered by AI.

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