Written by Aditya Raghunath at The Motley Fool Canada

Valued at a market cap of $15.4 billion, First Solar (NASDAQ:FSLR) stock is down over 50% from all-time highs. Despite the ongoing pullback, the renewable energy stock has returned 188% to shareholders in the last five years.

Clean energy stocks have underperformed the broader market over the past year due to several factors, including elevated interest rates, increased competition, and policy changes.

Additionally, First Solar’s growth trajectory has decelerated markedly, with management projecting single-digit revenue growth through 2026, compared to historical growth rates that exceeded 25%.

However, the drawdown in FSLR stock allows you to gain exposure to a quality company trading at a cheap multiple. So, let’s see why this large-cap renewable energy stock could be the best investment of the decade.

First Solar is the only U.S.-headquartered, vertically integrated solar manufacturer, operating across three states with comprehensive domestic supply chain capabilities. This strategic positioning provides it with advantages in the current trade environment, given that the trade war has created challenges for international manufacturing competitors.

First Solar ended the first quarter (Q1) of 2025 with a backlog of 66.3 gigawatts (GW), securing 0.6 GW in new bookings at US$0.305 per watt. With 2.9 GW of module sales recorded in Q1 and production capacity of 4.0 GW, First Solar demonstrates strong operational execution despite market headwinds.

First Solar’s differentiated Cadmium Telluride technology enables counter-positioning against Chinese silicon-based manufacturers, while its vertically integrated operations provide cost advantages. The initial commercial production of CuRe technology represents a potential advancement in module performance and production efficiency.

Ongoing capacity expansion in Alabama and Louisiana strengthens domestic manufacturing capabilities, mitigating tariff risks. However, the company has adjusted its 2025 earnings per share (EPS) guidance to a range of US$12.50 to US$17.50, reflecting potential tariff impacts on its international operations.

First Solar’s strategic focus on optimizing international assets while expanding domestic capacity positions it to capitalize on favourable U.S. policies supporting renewable energy manufacturing.

CEO Mark Widmar emphasized that the U.S. will require 128 gigawatts of new capacity by 2029, with solar energy offering the fastest deployment timeline compared to natural gas (five years) or nuclear power (over a decade).