Solar stocks are basking in the spotlight this August, with First Solar, Inc. standing out as a notable leader amid a broad rally fueled by both political developments and investor enthusiasm. As the stock market digests a recent pause in the AI-driven frenzy, the Energy-Solar industry group, tracked by IBD, has collectively surged nearly 17% during August 2025, according to Investors Business Daily. This advance includes a 4.6% gain so far this month, a remarkable turnaround for a sector that has faced its share of turbulence.
The catalyst behind this sunny performance? The Trump administration’s decision to offer a lifeline to the solar industry, a move that’s injected fresh optimism into solar stocks at a time when other market segments, like tech, have taken a breather. As a result, companies like First Solar have seen their profiles—and their stock prices—rise sharply, even as some volatility continues to ripple through the market.
First Solar’s momentum is underscored by its Relative Strength (RS) Rating, which jumped to the 80-plus level as of August 18, 2025. This technical indicator, as reported by Investors Business Daily, signals that First Solar is outperforming the vast majority of stocks in the market—a clear vote of confidence from investors and analysts alike.
But it’s not just technicals driving the story. Institutional investors have been piling in as well. Russell Investments Group Ltd. increased its holdings in First Solar by a staggering 44.0% during the first quarter of 2025, acquiring an additional 58,241 shares and bringing its total to 190,722 shares, according to a recent SEC filing. At the end of the quarter, this stake was worth $24,149,000, amounting to about 0.18% of the company. Other major players, including Raymond James Financial Inc., Mariner LLC, Jump Financial LLC, NewEdge Advisors LLC, and the Canada Pension Plan Investment Board, also made significant moves in the fourth quarter of 2024—either acquiring new stakes or increasing their positions.
Institutional ownership now accounts for a whopping 92.08% of First Solar’s shares, a figure that speaks volumes about the confidence large investors have in the company’s long-term prospects. This heavy institutional presence often brings stability and can help insulate a stock from the wild swings that sometimes rattle more thinly traded names.
Wall Street analysts, too, have been warming up to First Solar. The Goldman Sachs Group boosted its price objective from $204.00 to $255.00 and reiterated a “buy” rating in a research note dated May 19, 2025. Royal Bank of Canada followed suit, raising its target from $188.00 to $200.00 with an “outperform” rating on July 1. JPMorgan Chase & Co. wasn’t far behind, upping its price target from $200.00 to $208.00 and giving the company an “overweight” rating on July 22. Morgan Stanley set a price objective of $223.00 with an “overweight” rating in April, while Truist Financial reaffirmed a “buy” rating and issued a $200.00 price target on May 1, though this was a downward revision from a previous $245.00 target.
According to MarketBeat.com, the consensus among analysts is a “Moderate Buy,” with an average price target of $222.44. Out of the analysts covering the stock, two rate it as a Strong Buy, twenty-two as a Buy, four as a Hold, and just one as a Sell—an impressive distribution for any company in today’s competitive energy landscape.
Yet, it hasn’t all been smooth sailing. Shares of First Solar traded down 7.0% to $192.00 on August 14, 2025, with a hefty trading volume of 5,216,675 shares—well above the average. The company’s 50-day moving average stands at $174.62, and its 200-day moving average is $155.00, reflecting a steady climb over the past several months. First Solar’s market capitalization is now $20.59 billion, with a price-to-earnings ratio of 16.42 and a beta of 1.48, indicating a stock that’s both sizable and somewhat more volatile than the broader market.
Financially, First Solar continues to deliver. The company reported second-quarter earnings per share of $3.18 on July 31, 2025, beating analysts’ consensus estimates by $0.50. Revenue for the quarter came in at $1.10 billion, up 8.6% compared to the same period last year. Net margin stands at an impressive 28.95%, and return on equity is a robust 15.57%. For the full year 2025, First Solar has set guidance between $13.50 and $16.50 in earnings per share, with sell-side analysts predicting an average of $13.05 EPS for the current year.
Insider activity has also been notable. Michael Koralewski, an insider at the company, sold 2,951 shares on June 2, 2025, at an average price of $158.21, netting $466,877.71. CEO Mark R. Widmar made an even larger transaction, selling 23,912 shares on August 12 at an average price of $185.47, for a total value of $4,434,958.64. Following the sale, Widmar still owns 87,978 shares, valued at approximately $16.3 million. In total, insiders sold 46,691 shares valued at $8,248,477 over the last three months, though insiders still hold 0.48% of the company’s stock.
First Solar’s business model sets it apart from many competitors. The company manufactures and sells photovoltaic (PV) solar modules using thin film semiconductor technology, which provides a lower-carbon alternative to traditional crystalline silicon PV modules. Its reach is global, with operations in the United States, France, Japan, Chile, and beyond.
As the solar industry benefits from both policy support and the ever-growing demand for clean energy, First Solar appears well-positioned to ride the wave. The proliferation of data centers and electric vehicles is putting additional strain on the electric grid, a trend that could further boost demand for solar solutions. According to Investors Business Daily, “the rally coincides with the Trump administration offering the solar industry a lifeline,” highlighting the pivotal role of policy in shaping the sector’s fortunes.
While the broader market takes a breather from its AI-driven highs, solar stocks—and First Solar in particular—are proving that there’s still plenty of energy left in the tank. With strong institutional backing, bullish analyst sentiment, and solid financials, First Solar is shining brightly in an otherwise uncertain market landscape.
For investors and industry watchers alike, the coming months will reveal whether this solar surge can maintain its momentum or if clouds are looming on the horizon. For now, though, First Solar’s ascent is a testament to the power of policy, innovation, and a little bit of market sunshine.
