The Zhitong Finance App learned,$First Solar (FSLR.US)$Closed up 8.03% to $212.11 on Tuesday, leading the way in gains$S&P 500 Index (.SPX.US)$Constituent stocks. UBS previously released a report saying that First Solar is “an overlooked direct beneficiary” of the increase in electricity demand driven by artificial intelligence (AI), reaffirmed the stock's “buy” rating and raised the target price from $252 to $270.
UBS analysts Jon Windham and William Grippin said there is a direct link between artificial intelligence and First Solar: “Under a '100% renewable' sustainable development policy, big tech companies match their non-renewable electricity consumption through power purchase agreements.” They used$Amazon (AMZN.US)$,$Microsoft (MSFT.US)$,$Meta Platforms (META.US)$und$Alphabet-C (GOOG.US)$Take technology companies such as Google, which it owns, for example.
The analysts said First Solar's “unique technology is well-suited to two of today's biggest structural themes: AI-driven growth in electricity demand and growing protectionism in the US.”
Analysts believe First Solar will continue to increase its market share in the US, with earnings per share soaring from $7.74 in 2023 to $36.74 in 2027.
Piper Sandler analyst Kashy Harrison also raised the target price of First Solar from $195 to $219 and maintained an “gain” rating.
Other clean energy/artificial intelligence companies that analysts have focused on recently have also risen, among them,$Bloom Energy (BE.US)$It closed up 17% on Tuesday.$Sunrun (RUN.US)$Up nearly 5%,$Vistra Energy (VST.US)$It closed up 3%,$Constellation Energy (CEG.US)$Up nearly 4%.
Editor/Somer