Solar stocks are surging Friday, with SolarEdge Technologies (NASDAQ:SEDG) and Canadian Solar (NASDAQ:CSIQ) stocks among the biggest movers of the session. SEDG is leading the charge with a 14% gain to $52, while CSIQ is joining the move, up 7% to the $14.50 area. The sector is catching a broad bid, but SolarEdge and Canadian Solar are at very different points in their recovery stories.
SolarEdge stock is a momentum recovery trade that keeps building on itself. Meanwhile, Canadian Solar stock is a beaten-down name bouncing off multi-year lows. Both are catching a bid, but for different reasons.
SolarEdge: A Turnaround That’s Starting to Stick
SEDG stock is up 80% year-to-date and has tripled over the past year. That kind of move doesn’t happen without a real operational story behind it, and SolarEdge has one.
The company’s Q4 2025 earnings, filed February 18, showed a business that’s genuinely healing. Revenue came in at $335.36 million, up 96.4% year-over-year, a dramatic acceleration that reflects recovering demand in its core inverter business. Non-GAAP gross margin expanded to 23.3%, marking the fifth consecutive quarter of margin expansion.
The cash flow picture is even more telling. SolarEdge generated $104.26 million in operating cash flow for full-year 2025, compared to negative $313.32 million in fiscal 2024. A company that was burning cash at that rate a year ago is now self-funding. That’s the kind of inflection that changes how investors price a stock.
CEO Shuki Nir set the tone for what comes next. “2026 will be a transformational year for SolarEdge,” Nir asserted, pointing to the company’s pivot toward its Nexis platform and power solutions for AI data centers.
TD Cowen raised its SEDG stock price target to $43 from $38 following the results. With the stock now above $52, the market is pricing in more than what the analysts have modeled so far.
Even after this run, SEDG is still down 81% from its five-year highs. The recovery has been real, but the stock was trading near $281 in early 2021. This is a company rebuilding credibility, not one that’s reclaimed its former status.
Canadian Solar: A Bounce Off the Floor
Canadian Solar’s story today is simpler. CSIQ stock is bouncing, having fallen 43% year-to-date and 25% in just the past week heading into today. When a stock gets that oversold, any positive sector sentiment can spark a sharp snapback, and that appears to be what’s happening.
Canadian Solar’s Q4 2025 results, filed March 19, were genuinely weak. Revenue of $1.22 billion missed estimates by nearly 9%, and gross margin collapsed sharply from the prior quarter due to impairment charges and delayed project sales. That’s a painful quarter.
However, the longer-term setup is what’s keeping value-oriented investors interested. Canadian Solar’s energy storage contracted backlog hit a record $3.6 billion. The company’s Texas module factory is running at a 5 gigawatt annual run rate, and its Indiana HJT cell factory is expected to produce its first cell by end of March 2026.
Canadian Solar CEO Shawn Qu described 2026 as “a transition year” focused on U.S. manufacturing reshoring. That’s an honest framing: the business is in the middle of a heavy investment cycle, not at the end of one.
The Broader Solar Tailwind
Today’s moves don’t exist in isolation. Solar has been showing up repeatedly in market movers lists this month, with Enphase Energy (NASDAQ:ENPH) shares up 37% year-to-date. The sector is catching a bid from multiple directions: growing electricity demand tied to AI infrastructure buildout, clean energy policy momentum, and the expectation that interest rates have more room to fall from here.
Rate sensitivity matters for solar. These companies rely on project financing, and residential solar adoption is directly tied to mortgage affordability. The 10-year Treasury yield sits at 4.26% today, up from a recent low of 3.97% in late February. The fact that solar stocks are rallying into a modest rate uptick suggests the market is more focused on the demand story than the financing cost story right now.
All in all, SEDG stock has the stronger fundamental case behind its move. CSIQ stock is more speculative here, indicating a bounce off deeply depressed levels with a real business transition still playing out. The two stocks are moving for distinct reasons, but solar-industry investors will still celebrate a bright, sunny day to end the week.
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