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First Solar reported Q1 net sales of $1.04 billion（約1700億円）, up 24% year over year, driven by increased module sales to third parties fueled by AI demand. The company holds a 47.9-gigawatt contracted backlog worth $14.4 billion（約2.3兆円） through 2030, with expectations to sell 17.6 gigawatts and earn $5.05 billion（約8100億円） at the projected 2026 midpoint.
Why it matters
First Solar's valuation is strikingly low relative to its performance—it trades at a 16.5 price-to-earnings ratio and a 0.67 price/earnings-to-growth ratio despite achieving a 25.8% annualized revenue growth rate over the past three years and reaching 33% net margins in Q1. For context, peers like Enphase Energy trade at a 51.1 P/E ratio despite posting revenue declines, and SolarEdge has a forward P/E of 208 while unprofitable. This valuation gap may suggest the market has not yet fully recognized First Solar's position in solar-powered AI data centers.
What to watch
Demand for utility-scale solar energy should continue building as AI infrastructure expands, particularly if Elon Musk pursues solar-powered AI data centers for SpaceX. The company's "substantially committed" U.S. production through 2028 and record sales in India (approximately 1 gigawatt in Q1) demonstrate execution on this opportunity.
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