First Solar Inc., the largest solar panel maker in the United States, has surpassed Sungrow Power Supply Co. to become the world's most valuable solar manufacturer. With a market capitalization of $21.15 billion, First Solar has ended China's dominance in the solar industry since 2018. In contrast, Sungrow Power Supply Co. has a market value of about $20.85 billion [beae6d80].
China's solar giants are currently facing challenges such as falling prices, shrinking profits, and geopolitical tensions. First Solar, on the other hand, benefits from higher tariffs on Chinese products in the United States and subsidies from the Biden administration. These factors have contributed to First Solar's rise in market value and its position as a leader in the solar energy sector [beae6d80].
First Solar, Inc. (NASDAQ:FSLR) is engaged in the production and development of photovoltaic solar energy modules in the US, Asia, and Europe. It has invested $2.8 billion in three factories in Ohio and plans to invest an additional $1.2 billion to expand its manufacturing capacity to 10 GW by 2025 in the United States. The company expects its manufacturing capacity to reach 20 gigawatts by 2025 globally. First Solar, Inc. (NASDAQ:FSLR) recently released its earnings for the fiscal first quarter of 2024, posting earnings per share (EPS) of $2.20 and revenue of $749.11 million, a year-over-year increase of 44.8%. The company has a strong backlog and a commitment to innovation, with a backlog of 78.3 gigawatts of orders booked to 2030. The CEO of First Solar, Inc. (NASDAQ:FSLR) believes that the new tariffs announced by the Biden Administration against China can help the local solar manufacturers benefit from stable policies. As of May 23, First Solar, Inc. (NASDAQ:FSLR) is trading at a trailing twelve-month PE of nearly 25x, cheaper than the industry average of 45.33x. The stock has gained over 75% in the past six months and has received multiple ratings and price target upgrades from analysts.
However, despite its market value, First Solar still has a long way to catch up with its Chinese counterparts in terms of production capacity. Chinese solar manufacturers have significantly higher production capacity compared to First Solar. Nonetheless, First Solar's success in the market and its strategic advantages position it as a strong competitor in the global solar industry [beae6d80].