How Is First Solar's Investment Strategy Powering Its Long-Term Growth?

Core Insights - First Solar (FSLR) is expanding its manufacturing capacity to meet increasing demand for its thin-film solar modules, driven by factors such as the Inflation Reduction Act and the rising need for clean electricity from large-scale projects like AI data centers [1][8] - The company is launching higher-output CuRe modules in early 2026 and investing in perovskite thin-film R&D to enhance efficiency and reduce costs [2][8] - FSLR plans to invest between $0.9 billion and $1.2 billion in capital expenditures during 2025 to modernize operations and construct new manufacturing facilities [3][4] Investment and Production Plans - The capital expenditure plan aims to deliver between 16.7 gigawatts (GW) and 17.4 GW of solar modules by the end of 2025, enhancing FSLR's competitive advantage and market share [4][8] - The company is focused on improving module output and production capacity through upgrades to existing machinery and equipment [3][4] Financial Performance and Estimates - The Zacks Consensus Estimate indicates a year-over-year EPS growth of 21.63% for 2025 and 58.36% for 2026 [7][9] - FSLR's stock is currently trading at a forward price-to-earnings ratio of 11.45X, which is lower than the industry average of 18.29X, suggesting it is undervalued [10] Market Position - In the past month, FSLR's shares have increased by 9.2%, outperforming the industry's growth of 4.9% [12]