Why First Solar is a must-have in the age of artificial intelligence – First Solar (NASDAQ:FSLR)

As the AI ​​revolution gathers pace, an optimistic analyst predicts a surge in electricity demand, which they believe will be a boon for solar companies like First Solar Inc (NASDAQ:FSLR).

First Solar stock has returned 39.38% to investors over the last year, over 60% year-to-date and about 80% over the last six months.

Meeting AI-powered electricity needs

UBS analysts raised their price target on First Solar stock to $270 per share, citing its alignment with AI-powered electricity needs. This improvement reflects the company’s potential to leverage the growing demand for renewable energy to power AI applications.

First Solar offers thin-film solar modules that offer distinct advantages in terms of speed to market and value proposition. The company’s expansion into the U.S. market, combined with domestic incentives such as the Manufacturing Tax Credit under the Inflation Reduction Act, could position it for favorable growth.

Additionally, the White House’s recent move to remove the bifacial module exclusion further strengthens the prospects for U.S. solar production.

With projected earnings per share growth and a track record of exceeding expectations, First Solar remains a key player in the evolving renewable energy landscape.

Analysts predict sustained growth as the company continues to leverage its technological expertise and market position in the face of an AI-driven energy transition.

Also Read: Deep Dive into Early Solar Stocks: Analyst Perspectives (21 Ratings)

The charts confirm the bullish forecasts of analysts

Chart: Benzinga Pro

The bullish analyst outlook for First Solar is supported by strong technical indicators, with the stock price consistently above the five-, 20- and 50-day exponential moving averages, signaling a strong uptrend and buying pressure.

Additionally, First Solar’s stock price is above the 8-, 20-, 50- and 200-day simple moving averages, which indicates a buy signal.

Overbought RSI suggests caution

Chart: Benzinga Pro

The Moving Average Convergence Divergence indicator confirms a bullish recommendation of 18.22, but caution is advised as the relative strength index (RSI) of 87.83 suggests the stock is overbought.

Bollinger Bands suggest a bullish recommendation, with stocks trading in the upper zone and beyond.

Overall, the technical analysis is in line with analyst optimism, but RSI says investors should keep in mind potential near-term pullbacks due to the stock’s overbought status.

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