The hidden concerns behind the surge in solar stock prices: Yuanjing skyrocketed over 40% on the 5th, can Musk-related topics support the market outlook?

This week, the Taiwan stock market’s solar energy sector experienced a surge in limit-up performances, with the industry leader Yuanjing (6443) standing out the most. Starting from 13.65 NT dollars on Monday (8th), after consecutive gap-ups and volume-driven lifts, the stock price has increased by over 40% within just five trading days. It once hit the daily limit-up at 19.25 NT dollars. This intense rally has driven the market into frenzy. Simultaneously, other solar stocks such as Jinguang (6209), Ruite (2349), and Jingchen Technology (6419) also hit the limit-up, transforming the entire industry sector into a market focal point.

Elon Musk’s Space Vision Ignites Imagination, Solar Stocks Become Market Favorites

The recent surge in solar stock prices is primarily driven by Tesla CEO Elon Musk’s forward-looking concept—sending AI servers into space orbit via SpaceX, powered by endless solar energy. To address the growing AI computing power crisis, this blueprint envisions launching millions of tons of satellites into orbit annually, each equipped with high-performance computing modules.

Market keenly perceives this opportunity, quickly focusing on Yuanjing, which is already part of SpaceX’s supply chain, viewing it as the most direct beneficiary. Meanwhile, the Chinese government recently launched a “storage” policy to resolve overcapacity issues, helping to ease the long-term vicious price competition in the global solar market. Additionally, signs of revenue improvement among some Taiwanese solar manufacturers have reinforced market expectations of a bottoming industry, prompting value-driven buying among low-priced stocks.

If Musk’s plans are gradually implemented, the demand for high-efficiency solar cells and modules capable of withstanding extreme space environments (high radiation, low temperature, low pressure) will grow exponentially. Industry analysts predict that not only Yuanjing and other solar companies, but also satellite communication component suppliers like Shengda Technology and Qiji, could open up new business opportunities.

Fundamentals and Stock Prices Diverge, Investors Must Heed Key Risk Warnings

However, investors must face an awkward reality: the current hot solar stock prices of Yuanjing are vastly disconnected from its fundamentals. According to the latest financial reports, the company’s revenue for the first three quarters totaled only 1.452 billion NT dollars, but its after-tax net loss reached 773 million NT dollars, with a loss per share of 1.9 NT dollars. The core business remains deep in losses.

Management admits that the overall solar industry is indeed at a trough this year. They are hopeful for recovery through the government’s “rooftop solar upgrade” program, expecting Taiwan’s demand to gradually strengthen around the second or third quarter of 2026. Overseas, Yuanjing plans to expand some capacity into the US and Japanese markets.

Analysts particularly warn that solar stocks, due to their long-term low prices and active trading nature, tend to attract major capital flows. Many companies lack a solid valuation basis based on P/E ratios. These stocks often become targets for speculative funds, with margin debt and institutional holdings flow being key variables influencing stock price movements.

Space Solar Power Technology Still in Early Stages, Commercialization Path Filled with Variables

It should not be underestimated that Musk’s space solar power project still faces multiple practical obstacles. Although solar stock prices have already reflected high expectations for future business opportunities, the solar modules needed for space applications still require breakthroughs in conversion efficiency and durability under extreme environments. Heat dissipation technology also presents significant challenges. Currently, most related applications remain in early R&D verification stages, with a long way to go before large-scale commercial deployment.

Conclusion: Exercise Caution in Thematic Trading, Focus on Three Key Factors

When investing in solar stocks, investors should strictly control their positions, closely monitor margin debt and institutional trading flows, and avoid chasing prices excessively. The key to future support depends on three major factors: whether Musk’s project accelerates in specific timelines, when Yuanjing’s profitability will turn around, and whether the global solar industry supply and demand truly move toward healthy balance. Between optimistic imagination and fundamental reality, potential technological uncertainties and performance risks require investors to exercise caution.