On April 28, we noted, “Keep an eye on solar stocks, like First Solar (FSLR). Over the last few days, President Biden unveiled a $7 billion grant for solar power under the Inflation Reduction Act.” At the time, FSLR traded at around $177.
Today, it’s up to $282 and could see higher highs.
Helping, UBS analysts just reiterated a buy rating, with a price target of $270, noting FSLR is “an overlooked, direct beneficiary” of the ramp-up on artificial intelligence-driven power demand.
As noted by Barron’s, “There’s a direct line from artificial intelligence to First Solar, the team said, noting how a reply from AI uses about 10 times more electricity than a typical Google search. ‘Under ’100% Renewable’ sustainability policies the large tech companies match their nonrenewable electricity consumption through Power Purchase Agreements (PPAs).” They pointed to tech companies, like Amazon, Microsoft, Meta, and Alphabet.
Analysts at Piper Sandler also raised their target on FSLR to $219, with an overweight rating.
In addition, as noted by CNBC, “AI uses 10 times more electricity than traditional Google search, according to UBS. As electricity demand from AI grows, Amazon, Microsoft, Meta and Alphabet’s Google unit has committed to buying renewable power that matches their consumption.”
Sincerely,
Ian Cooper
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