Is First Solar Stock Underperforming the Nasdaq?

Tempe, Arizona-based First Solar, Inc. (FSLR) is a leading photovoltaic (PV) solar technology and manufacturing company. The company develops and manufactures solar modules using its proprietary thin-film semiconductor technology, offering an alternative to conventional crystalline silicon PV modules. First Solar operates a global manufacturing network spanning the United States, India, Malaysia, and Vietnam. With a market cap of $21.6 billion, the company is one of the largest solar manufacturers.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and First Solar fits this description. The company is also one of the few major solar manufacturers with a significant U.S. manufacturing footprint, positioning it to benefit from domestic-content incentives and the broader push to expand U.S. solar manufacturing capacity. First Solar ended the second quarter with a contracted sales backlog of approximately 45.1 GW extending through 2030.

First Solar currently trades 37.3% below its 52-week high of $320.95 recorded on June 3. Moreover, FSLR’s stock has declined 21.1% over the past three months, lagging behind the Nasdaq Composite’s ($NASX) 1.5% uptick during the same time frame.

In the longer term, First Solar stock has declined 23% on a YTD basis, whereas the Nasdaq has increased 13.7%. Additionally, shares of FSLR plunged 4.5% over the past 52 weeks, notably underperforming NASX’s 18.7% returns over the same period.

First Solar’s stock has traded mostly below the 50-day and 200-day moving averages since early July; however, it traded above the averages in the first few sessions of August.

First Solar’s stock has fallen in 2026 largely because investors have become more cautious about the outlook for U.S. solar demand and the policy environment. Although the company continues to have a substantial contracted backlog, its second-quarter 2026 net sales declined 4% year-over-year.

Concerns over tariff uncertainty and changing U.S. policy landscapes have also weighed on sentiment, with First Solar itself warning that policy changes could affect module demand, pricing and costs.

In comparison, its rival Nextpower Inc. (NXT) has notably outpaced the FSLR stock. NXT stock has slumped 8.2% on a YTD basis but rose 13.5% over the past 52 weeks.

Nevertheless, among the 33 analysts covering the FSLR stock, the consensus rating is a “Moderate Buy.” Its mean price target of $267.71 suggests a 33.1% upside potential from current price levels.

On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.