First Solar, Inc. (NASDAQ:FSLR) shares were hit on May 19, 2025, down more than 7.5%. Let's discuss why it happens.

A solar panel farm with an orange sky illuminates the expansive landscape.

First Solar, Inc. (NASDAQ: FSLR) is a leading American solar technology company and a global provider of environmentally friendly solar modules responsible for production. FSLR is unique among the top ten solar manufacturers in the world because it is the only company in the United States and not a company made in China.

Prior to May 19, shares of First Solar Energy Corporation (NASDAQ:FSLR) soared more than 45% last month after U.S. House Republican lawmakers proposed large tax and expenditure packages, including smaller lines of credit for the solar and wind industries. The stock also benefits from Goldman Sachs’ rating upgrade, with the stock’s price target rising from $204 to $255.

But solar stocks, including FSLR, took a major blow on May 19, after conservative Republican lawmakers revealed they had received a commitment from leadership to end the critical clean energy tax credit, which was more than expected, as part of a broader strategy to increase President Trump’s tax and spending plans. Initially, many energy credits, including tax incentives for clean energy production, were reported to be phased out in 2029 and ended entirely in 2032. Therefore, news of early cancellation, while not yet specified, has attracted investors' attention to the future profitability and growth of solar companies, which still rely on favorable policy support and good policy support provided from Washington State.

Despite Donald Trump's declaration of an "energy emergency," Donald Trump's administration tends to fossil fuels away from renewable sources such as wind and solar. In fact, the president even said:

"You know things that people don't like, those huge solar fields built on land that covers 10 miles by 10 miles. I mean they're ridiculous, the whole thing."

That is, First Solar, Inc. (NASDAQ: FSLR) represents real value and has proven its courage through continuous innovation. The company produces a proprietary advanced film module that performs better than under undesirable conditions such as low light and hot weather. Its panels are also larger in size, reducing costs per watt and making it ideal for utility-scale projects.

Although we acknowledge the potential growth of FSLR, our belief lies in the belief that certain AI stocks have greater returns and limited downside risks. If you are looking for more promising AI stocks than FSLR and have 100x upside potential, check out our report Cheapest AI stocks.