--- title: "Policy expectations ignite the US solar sector: First Solar's stock price hits an 18-year high, with the sector up 40% year-to-date" type: "News" locale: "en" url: "https://longbridge.com/en/news/287991630.md" description: "Driven by expectations of a new round of tariff policies in the United States and a surge in demand for clean energy, solar stocks have recently surged, with First Solar's stock price soaring 10.8%, reaching an 18-year high. UBS analysts pointed out that policy momentum has reignited, and the market is focused on the upcoming announcement of the \"Section 232\" tariff decision. Analysts have upgraded First Solar's rating to \"Buy,\" with a target price of $315, believing that the risk of order cancellations faced by the company has significantly decreased" datetime: "2026-05-29T01:21:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/287991630.md) - [en](https://longbridge.com/en/news/287991630.md) - [zh-HK](https://longbridge.com/zh-HK/news/287991630.md) --- # Policy expectations ignite the US solar sector: First Solar's stock price hits an 18-year high, with the sector up 40% year-to-date According to Zhitong Finance APP, driven by expectations of a new round of tariff policies in the United States and a surge in demand for clean energy, solar stocks have recently experienced a strong breakout trend. The solar basket index UBXXSOL compiled by UBS has soared 33% this month, with a cumulative increase of 40% year-to-date, clearly breaking through a downward trend that has lasted for over five years from a technical perspective. UBS analyst Catherine Gordon attributes this round of gains to declining yields and a rekindling of policy momentum. Market focus is currently on the tariff decision under "Section 232," expected to be announced in mid to late June, which may involve tariffs on polysilicon imports. ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260529/1780017434925225.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Among them, First Solar (FSLR.US) has become the leader in this round of market activity. On Thursday, First Solar's stock price closed up 10.8%, reaching an 18-year intraday high of $310.42, marking the sixth consecutive trading day of gains. Gordon revealed that current policy expectations include setting a minimum import price while imposing tariffs, and investments in domestic manufacturing by companies may be used to offset tariff obligations. She described the current market as entering a mode of "buying both rumors and news," with momentum continuing to accumulate as policy milestones approach. Bullish sentiment is also confirmed by adjustments in institutional ratings. GLJ Research analyst Gordon Johnson upgraded First Solar's rating from "Hold" to "Buy," setting a target price of $315. He believes that the company's order cancellation risk has significantly decreased, and the pending tariff decision under Section 232 is an upcoming positive catalyst. Roth Capital also pointed out that Section 232 is likely to become a "positive catalyst" for First Solar, emphasizing that the company's use of cadmium telluride (CdTe) thin-film technology completely isolates it from the impacts of the trade war on silicon-based solar products, creating a unique competitive advantage. In addition to policy variables, energy security and demand from data centers further solidify the fundamental logic of the sector. BloombergNEF analyst Rob Barnett stated that conflicts in the Middle East are reinforcing the market's perception of solar, energy storage, and wind power as rapidly deployable domestic energy sources. Customers are currently prioritizing cost visibility, supply resilience, and low exposure to natural gas price fluctuations. Meanwhile, utility-scale solar demand from data centers continues to expand, with an estimated additional 183 gigawatts of corresponding installations in the U.S. between 2026 and 2030. In the sub-industry, utility-scale solar demand continues to show resilience in a high pricing volatility environment. Gordon noted that Nextpower (NXT.US) is still viewed as a core holding by institutions. In contrast, the residential solar sector has seen a short squeeze surge due to Enphase Energy (ENPH.US) announcing solid-state transformer technology, driving up stocks like SolarEdge (SEDG.US). However, Gordon warned that this technology is not a differentiated breakthrough, as giants like Schneider Electric and ABB have similar layouts, and the rebound in the residential solar sector may face a risk of correction Goldman Sachs analyst Brian Lee also emphasized in an earlier report that the residential sector remains challenging, although the channel inventory situation is becoming healthier. Looking ahead, Gordon believes that aside from the details of the implementation of Section 232 tariffs, First Solar's statements regarding order conditions in the upcoming second-quarter earnings call will become the next key catalyst ### Related Stocks - [FSLR.US](https://longbridge.com/en/quote/FSLR.US.md) - [RAYS.US](https://longbridge.com/en/quote/RAYS.US.md) - [TAN.US](https://longbridge.com/en/quote/TAN.US.md) - [UBS.US](https://longbridge.com/en/quote/UBS.US.md) - [NXT.US](https://longbridge.com/en/quote/NXT.US.md) - [ENPH.US](https://longbridge.com/en/quote/ENPH.US.md) - [SEDG.US](https://longbridge.com/en/quote/SEDG.US.md) - [GS.US](https://longbridge.com/en/quote/GS.US.md) - [W4VR.SG](https://longbridge.com/en/quote/W4VR.SG.md) ## Related News & Research - [Is First Solar’s (FSLR) India Tracker Partnership Quietly Reframing Its Global Risk Profile?](https://longbridge.com/en/news/287787185.md) - [Solar ETF surges to 52-week high amid oil market turmoil](https://longbridge.com/en/news/288009825.md) - [Why First Solar stock is soaring this week](https://longbridge.com/en/news/288089884.md) - [First Solar (FSLR) Valuation Check As GameChange Solar Partnership Targets India’s Thin Film Demand](https://longbridge.com/en/news/287604545.md) - [Global solar capacity added in 2024 surpasses 500 GW milestone](https://longbridge.com/en/news/287468483.md)