Is First Solar Stock Underperforming the Nasdaq?

First Solar, Inc. (FSLR), a Tempe, Arizona-based company, specializes in photovoltaic (PV) solar technology and manufacturing. The firm utilizes its proprietary thin-film semiconductor technology to develop and manufacture solar modules, providing an alternative to traditional crystalline silicon PV modules. With a substantial market cap of $21.6 billion, First Solar is among the leading solar manufacturers.

Boasting a market presence across the United States, India, Malaysia, and Vietnam, the company is also one of the few significant solar manufacturers with a considerable U.S. manufacturing footprint.

As of the most recent data, the stock price of First Solar is trading approximately 37.3% below its 52-week high of $320.95, which was observed on June 3. Furthermore, FSLR's stock has experienced a decline of 21.1% over the past three months, trailing behind the Nasdaq Composite's ($NASX) 1.5% increase during the same period. On a year-to-date basis, First Solar stock has declined 23%, while the Nasdaq has experienced a rise of 13.7%.

Additionally, shares of FSLR have fallen by 4.5% over the past 52 weeks, significantly underperforming the Nasdaq's 18.7% gains in the same timeframe.

Since early July, First Solar's stock has been mostly trading below both the 50-day and 200-day moving averages. However, in the initial few sessions of August, the stock managed to surpass these averages. This decline in First Solar's stock price is primarily attributed to growing caution among investors regarding the outlook for U.S. solar demand and the policy environment.

Despite maintaining a substantial contracted sales backlog extending through 2030, the company reported a 4% year-over-year decrease in net sales for the second quarter of 2026. Policy uncertainty, tariff concerns, and changing U.S. policy landscapes have also negatively impacted investor sentiment, with First Solar warning that policy changes could affect module demand, pricing, and costs.

Comparatively, Nextpower Inc. (NXT), a rival company, has experienced a more modest decline of 8.2% on a year-to-date basis but has managed to rise by 13.5% over the past 52 weeks. Among the 33 analysts covering First Solar, the consensus rating is a Moderate Buy, with a mean price target of $267.71, indicating a potential 33.1% upside from the current stock price. It is worth noting that Subhasree Kar, the author of this article, had no positions in any of the securities mentioned at the time of publication.