First Solar (FSLR) Opens A New US Plant, Is It Still 33% Undervalued?

New US facility and earnings date put First Solar in focus

First Solar (FSLR) is drawing attention as it prepares to inaugurate a new US$330 million manufacturing facility in Gaffney, South Carolina, just ahead of its third quarter 2026 earnings release.

The new Gaffney plant and upcoming results have arrived alongside a choppy share price path. First Solar’s recent 1 day share price return of 4.58% contrasts with a year to date share price decline of 35.90%. Meanwhile, the 5 year total shareholder return of 48.21% shows longer term investors have still seen gains despite pressure over the past year and mixed sentiment around growth potential and policy risk.

Scan how First Solar compares with other solar and energy infrastructure players by reviewing the hand picked 42 power grid technology and infrastructure stocks in the same broader theme.

The recent bounce leaves First Solar caught between investors who see fresh upside from new US capacity and those who think the big gains are already spent. The valuation work comes next.

Most Popular Narrative: 33% Undervalued

On the narrative view, First Solar’s fair value of $263 sits well above the last close at $175.85, which puts the courtroom and policy mix in the spotlight for anyone weighing today’s price against the long term setup.

The Swift Current case matters more than its dollar size. US$360M of modules is small next to US$4.9 to 5.2B of annual sales, but the case attacks the energy-yield and degradation story that supports First Solar's premium pricing and the CuRe roadmap.

The edge-grind problem was already known and reserved. The substrate-defect and "preconditioning" allegations are new. If discovery supports them, or other owners file similar claims, the risk becomes industry-wide rather than one contract.

See why 32 investors see First Solar as 33% undervalued.

Result: Fair Value of $263 (UNDERVALUED)

Still, the narrative around First Solar could be knocked off course if policy support weakens faster than contracts reprice, or if warranty disputes escalate materially.

Find out about the key risks to this First Solar narrative.

Next Steps

Sentiment in this piece has pointed to both opportunity and friction. Move fast on your own homework, test the assumptions, and weigh the 4 key rewards.

Looking for more investment ideas beyond First Solar?

If you only stop at First Solar, you miss a wider field of opportunities that could fit your goals and risk comfort more closely.

• Target resilient balance sheets and steady fundamentals by scanning the list of solid balance sheet and fundamentals (24 results) that filters for financially grounded businesses.
• Hunt for quality at a discount through the 29 high quality undervalued stocks that highlights companies with strong metrics trading below their implied worth.
• Lock in potential income ideas using the 5 dividend fortresses that focuses on higher yielding stocks with an emphasis on stability.

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