First Solar (FSLR) is drawing fresh attention after news of its expanding U.S. manufacturing footprint, a sizable order backlog, and supportive clean energy policies that collectively shape how investors may think about the stock today.

Despite the news around First Solar’s expanding U.S. manufacturing base and strong backlog, the stock’s 30-day share price return is down 20.62%, while its 1-year total shareholder return of 16.18% and 5-year total shareholder return of 150.19% point to stronger longer term momentum.

If you want to see how other clean energy related plays are trading, this is a good moment to scan 36 power grid technology and infrastructure stocks

For First Solar, a 20.62% slide over 30 days sits alongside a sizable backlog and expanding U.S. footprint. Is the latest move pointing to cracks in the business, or just a swing in sentiment that has reset the valuation?

Most Popular Narrative: 17.1% Undervalued

The most followed narrative currently puts First Solar’s fair value at $251.90, compared with a last close of $208.86, framing the recent pullback against longer term assumptions.

The steadily growing, visibility rich contracted backlog (currently at $18.5 billion and 64 GW, with price adjusters for tech milestones and tariffs) provides stability against industry volatility; this allows consistent revenue recognition and helps mitigate net margin compression, even amid cyclical and policy driven swings in global solar markets.

Curious what sits behind that gap between price and fair value? Revenue expectations, profit margins, and future earnings multiples are all wired into this narrative. The mix may surprise you.

Result: Fair Value of $251.90 (UNDERVALUED)

However, this hinges on U.S. policy support and tariff frameworks remaining favorable, as well as First Solar managing trade disputes and customer credit issues effectively.

Next Steps

Given the mix of optimism and caution around First Solar, this is a moment to act quickly, review the data, and weigh the 4 key rewards

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.