11 Best Solar Energy Stocks to Buy According to Hedge Funds

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1. First Solar, Inc. (NASDAQ:FSLR)

No. of Hedge Fund Holders: 65

Topping our list of the Best Solar Energy Stocks is First Solar, Inc. (NASDAQ:FSLR), a leading American solar technology company and global provider of responsibly produced eco-efficient solar modules. FSLR is unique among the ten largest solar manufacturers in the world for being the only US-based company and not manufacturing in China.

First Solar, Inc. (NASDAQ:FSLR) posted strong sales in Q4 2024 as its revenue of $1.51 billion was up 30.68% YoY and beat estimates by $33.54 million. The increase was primarily a result of increased module sales. The company’s Q4 EPS of $3.65 fell below expectations by $1.08 due to potential challenges in cost management and unforeseen expenses. That said, FSLR’s overall net income for the full-year 2024 still surged by a hefty 55.5% YoY. First Solar ended the year with a solid net-cash balance of $1.2 billion, but due to the company’s capital-intensive expansion plans, the projected net cash balance for 2025 is between $0.7 billion and $1.2 billion.

First Solar, Inc. (NASDAQ:FSLR) remains focused on expansion, expecting to grow its global nameplate manufacturing capacity to over 25 gigawatts by 2026. The company’s competitive advantage stems from its domestic footprint, technological differentiation, and insulation from Chinese supply dominance. Therefore, First Solar is currently constructing a $1.1 billion manufacturing facility in Louisiana, which is set to begin commercial operations in the second half of this year. Moreover, a new R&D center in Ohio has also been launched to drive innovation and strengthen the solar technology company’s leadership.

Overall, First Solar, Inc. (NASDAQ:FSLR) ranks first on our list of the best solar energy stocks to buy according to hedge funds. While we acknowledge the potential of FSLR to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FSLR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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