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Here is Why SolarEdge (SEDG) Crashed by Almost 25% Today

The share price of SolarEdge Technologies, Inc. (NASDAQ:SEDG) fell by 24.67% on May 22, 2025. Let’s shed some light on the development.

A technician installing a communication device in a large solar energy system.

SolarEdge Technologies, Inc. (NASDAQ:SEDG) designs, develops, manufactures, and sells direct current  optimized inverter systems for solar photovoltaic installations in the United States, Germany, the Netherlands, Italy, rest of Europe, and internationally.

SolarEdge Technologies, Inc. (NASDAQ:SEDG) suffered a major blow after the House of Representatives narrowly passed President Trump’s ‘one big beautiful bill’ that terminates key clean energy credits that have supported the country’s renewable energy industry. The legislation, now moving to the Senate, takes a ‘sledgehammer’ to the Biden era’s Inflation Reduction Act, repealing grants intended to reduce air pollution, greenhouse gas emissions or purchase electric heavy-duty vehicles.

The solar energy industry, which relies heavily on the said credits, has been hit particularly hard. The sweeping tax and spending bill makes it impossible for solar energy players to claim or transfer tax tax credits, while terminating them completely for installers that lease equipment to customers. Moreover, a tax credit for homeowners that own their own panels will also be eliminated. As a result,  SolarEdge Technologies, Inc. (NASDAQ:SEDG) plummeted due to shaking investor confidence, as sales of its inverters would take a hit from lower demand for rooftop solar.

It must be mentioned that SolarEdge Technologies, Inc. (NASDAQ:SEDG) recently posted an adjusted loss per share of $1.14 for its first quarter of 2025, still beating forecasts by $0.02. The company’s revenue also grew by 7.4% YoY to almost $219.5 million, topping expectations by $15.25 million.

While we acknowledge the potential of SEDG to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SEDG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks to Buy According to Hedge Funds

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

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