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Here’s Why Ariel Global Fund Initiated a Position in First Solar (FSLR)

Ariel Investments, an investment management company, released its “Ariel Global Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter marked a period of extremes. The stocks fell after the “Liberation Day” tariff announcement in early April and rebounded following the pause in tariff implementation. Enthusiasm for artificial intelligence (AI) themed stocks and robust corporate earnings results lifted global and U.S. indices to new highs. Against this backdrop, the Ariel Global fund traded +7.38% higher in the quarter, compared to the +11.53% return of the MSCI ACWI Index and +5.84% return of the MSCI ACWI Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Ariel Global Fund highlighted stocks such as First Solar, Inc. (NASDAQ:FSLR). First Solar, Inc. (NASDAQ:FSLR) is a solar technology company. The one-month return of First Solar, Inc. (NASDAQ:FSLR) was -0.58%, and its shares lost 15.12% of their value over the last 52 weeks. On September 16, 2025, First Solar, Inc. (NASDAQ:FSLR) stock closed at $205.25 per share, with a market capitalization of $22.01 billion.

Ariel Global Fund stated the following regarding First Solar, Inc. (NASDAQ:FSLR) in its second quarter 2025 investor letter:

“We also added First Solar, Inc. (NASDAQ:FSLR), a U.S.-based photovoltaic solar technology and manufacturing company. As the only US based solar module manufacturer of scale, we believe the company stands to benefit from growing AI power demands as well as “America First” energy policy tailwinds. As of today, FSLR is sold out through 2026. However, as the final Inflation Reduction Act rules become clearer, we believe FSLR’s contract wins should accelerate, particularly as developers seek to secure as much capacity as possible to pre qualify modules for subsidies before they expire.”

First Solar, Inc. (NASDAQ:FSLR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 68 hedge fund portfolios held First Solar, Inc. (NASDAQ:FSLR) at the end of the second quarter, compared to 52 in the previous quarter. While we acknowledge the risk and potential of First Solar, Inc. (NASDAQ:FSLR) 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 First Solar, Inc. (NASDAQ:FSLR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered First Solar, Inc. (NASDAQ:FSLR) and shared some of the most undervalued solar stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.

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

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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.

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  • 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.

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