10 Best Solar Stocks to Buy in 2025

3. Enphase Energy Inc. (NASDAQ:ENPH)

Upside Potential: 25%

Number of Hedge Fund Holders: 39

Enphase Energy Inc. (NASDAQ:ENPH) is an energy technology company, renowned for pioneering semiconductor-based microinverter technology that has transformed residential and commercial solar markets. The company offers products such as microinverters, home energy storage systems, and smart monitoring software, ensuring efficient and reliable solar power generation.

In Q4 2024, the company shipped 1.69 million microinverters and 6.7 megawatt hours of IQ Batteries. To date, it has delivered approximately 80 million microinverters, representing nearly 28 GW. The company demonstrated strong growth, with Q4 2024 revenue increasing 26% year-over-year to $382.7 million. With a 31% operating margin, its adjusted EPS surged over 170% year-over-year to $0.92.

Following the results, a Craig-Hallum analyst reduced Enphase Energy Inc. (NASDAQ:ENPH)’s price target from $123 to $101 while maintaining a Buy rating. The analyst noted that despite a mixed 2024, the company delivered a modest Q4 revenue beat, driven by gross margin strength and better-than-expected EBITDA/EPS. U.S. revenue showed steady growth, supported by stable demand in California and other markets. However, he also highlighted that European revenue declined quarter-over-quarter, facing challenges tied to country-specific factors as the company continues its early-stage geographic expansion.