If Solar’s Rally Has Legs, These 2 Stocks Could Benefit Most

Industry Overview - Solar stocks experienced a significant rebound in 2025, with the Invesco Solar ETF (NYSEARCA: TAN) increasing by 48%, outperforming the S&P 500 [3][7] - Initial concerns regarding potential rollbacks of renewable energy tax credits under the Trump administration negatively impacted sentiment in the first half of 2025, but these fears were ultimately overstated [3][4] Company Performance - NextPower (NASDAQ: NXT) emerged as a standout performer in the solar sector, specializing in advanced solar tracking systems, with shares surging by 138% in 2025 [5][6] - The consensus price target for NextPower has risen from approximately $53 to $95.76, indicating nearly 10% additional upside potential from current levels based on 27 analyst ratings, with a consensus Moderate Buy rating [5][6] Institutional Investment - NextPower saw total institutional inflows of $2.27 billion over the past twelve months, contrasting with $957 million in outflows, reflecting strong confidence in the company's momentum and fundamentals [6] Market Outlook - The solar sector is consolidating from a position of strength, with NXT and First Solar (FSLR) identified as leaders, combining strong fundamentals and rising analyst confidence heading into 2026 [4][7] - The future performance of these stocks will depend on maintaining key support levels as they consolidate [7]