First Solar stock jumps on $1.2 billion investment plan

Shares of First Solar surged after the company revealed its $1.2-billion plans to expand U.S. manufacturing.

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SEANA SMITH: My play today is First Solar jumping on plans to expand US manufacturing. Now, it's investing $1.2 billion. A billion in a new factory based in the Southeast and then an additional $185 million to upgrade and expand its footprint in Ohio. The move allows First Solar to expand its solar capacity here in the US to 10 gigawatts over the next three years.

First Solar CEO Mark Winmar-- Widmar telling Yahoo Finance that this expansion is an important step towards achieving self-sufficiency in solar technology, which in turn supports America's clean energy security ambitions. Its deployment of solar at scale and its ability to lead with innovation.

So certainly a pop that we're seeing in shares today, Dave. Off the highs of the day, but certainly good news here just in terms for the manufacturing sector, and a step here from what we've heard that the Biden administration has focused on and wants to focus on moving forward.

DAVE BRIGGS: Yeah, I was expecting a tweet from President Biden on this one because the CEO did cite the Inflation Reduction Act as the reason that they felt that was certainty to move forward with this factory. And now, Ohio has been the beneficiary of the Chips Act and the IRA.

Interesting with solar, though, we're only enough to power 22 million homes. Our entire solar sector right now. And First Solar is sold out through 2025. So this is certainly a big boost, but it is way down the road before this is a big enough sector to begin to turn the tide.