Is First Solar, Inc. (FSLR) A Good Stock To Buy Now?

First Solar, Inc. (FSLR) has been a topic of debate among investors, with conflicting opinions on whether it is a good stock to buy. Antoni Nabzdyk, in a recent article on Monopolistic Investor’s Substack, presented a bearish thesis on FSLR. As of March 27th, FSLR’s share price was $190.29, with trailing and forward P/E ratios of 13.57 and 11.51 respectively.

Nabzdyk highlighted several concerns regarding First Solar, Inc.’s business. While the company has shown strong execution with disciplined margin expansion and free cash flow growth, these achievements are viewed as short-term and reliant on regulatory support such as the U.S. Inflation Reduction Act (IRA) and supply chain compliance premiums. The company is exposed to commodity pricing pressures, geographic concentration in the U.S., and volatile demand in emerging markets like India and Chile.

First Solar’s recent positive free cash flow is seen as temporary, driven by regulatory incentives, and may not reflect a stable long-term cash generation profile. Revenue growth, while impressive at 80% year-over-year in Q3 2025, has been accompanied by significant gross margin compression, indicating limitations in its cost-driven model. Backlog trends also show a decline, raising concerns about sustained order momentum.

In a competitive market where Chinese panels dominate on price and U.S. tariffs create uncertainty, First Solar faces challenges in capturing value efficiently. The company’s capital-intensive, commodity-heavy business model exposes investors to cyclical swings and capital erosion risks. Despite the sector’s overall growth potential, the market may be underestimating downside risks in First Solar, making it a risky proposition for long-term investors seeking stable returns.

It is important to note that a previous bullish thesis on FSLR highlighted the company’s financial performance, capacity expansion, regulatory tailwinds, and long-term growth potential. However, Monopolistic Investor’s bearish view emphasizes the temporary nature of free cash flow, margin compression, and risks associated with First Solar’s business model.

Investors should carefully consider these contrasting viewpoints and conduct thorough research before making any investment decisions regarding First Solar, Inc. (FSLR).