10 Best Solar Stocks to Buy in 2025

8. Daqo New Energy Corp. (NYSE:DQ)

Upside Potential: 30%

Number of Hedge Fund Holders: 19

Another China-based company, Daqo New Energy Corp. (NYSE:DQ), is a leading producer of high-purity polysilicon, a critical material used in the production of solar PV cells. The company supplies to major solar module manufacturers worldwide, playing a vital role in the solar value chain.

The company generates over 60% of its revenue by selling polysilicon products to major China-based photovoltaic manufacturers like JinkoSolar, Shuangliang, and Gokin Solar. In its Q4 2024 results announced on February 27, financial performance showed signs of stabilization, with quarterly revenue down just 2% from the prior quarter, reaching $195.4 million, and a gross loss of $65.3 million, compared to $60.6 million in Q3 2024. However, for FY 2024, revenue dropped significantly to $1.0 billion from $2.3 billion in 2023, accompanied by a gross loss of $213 million, a sharp contrast to the $921 million gross profit seen the previous year.

While Daqo New Energy Corp. (NYSE:DQ) stands to benefit long-term from global decarbonization goals and growing solar adoption, 2024 proved to be a difficult year due to excess capacity in the solar PV industry. This oversupply triggered significant price reductions across the value chain. In response, the company reduced production to mitigate losses, though it was insufficient to offset weaker demand and declining prices.

Despite these issues, on February 27, JP Morgan analyst Alan Hon maintained a Buy rating for Daqo with a price target of $28.5. Market sentiment remains generally positive, with a consensus 1-year median price target of $26, reflecting a potential 30% upside from current levels.