Daqo New Energy Corp. (DQ) Under Pressure: Roth Capital Warns of What’s Next

Daqo New Energy Corp. (NYSE:DQ) is among the best Chinese stocks to buy according to hedge funds. On April 30, Roth Capital cut the price target on Daqo New Energy Corp. (NYSE:DQ) from $25 to $19 and reiterated a Neutral rating. In a research note, the analyst highlights the company’s Q1 miss due to weak average selling prices and inventory impairment, estimating it to be nearly $100 million.

While management expects updated minimum price floor guidance in June, the firm believes that if the price guidance fails to come through, Daqo New Energy Corp. (NYSE:DQ) will reduce utilization/production and start selling at market prices.

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In Q1 2026, Daqo New Energy Corp. (NYSE:DQ) reported an EPS of -$1.31 and revenue of $26.7 million, significantly underperforming the estimated -$0.35 and $166.93 million, respectively. The company attributed this disappointing performance to the struggling polysilicon market, lower sales volumes, and inventory impairment charges. However, as highlighted by management, the company’s zero debt and significant liquidity, along with planned strategic initiatives, are positive factors for the company. This makes DQ one of the best Chinese stocks to buy.

Daqo New Energy Corp. (NYSE:DQ) is a provider of polysilicon to photovoltaic product manufacturers. The company’s products are utilized in ingots, wafers, and modules for solar power solutions.

While we acknowledge the risk and potential of DQ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DQ and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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