Solar stock prices surged over 40% in 5 days, as Musk's space-based power vision sparks industry imagination, but can the shadow of losses dissipate?

Hot Topic Drives Solar Stocks to Rise Collectively

This week, the solar stock market experienced a wave of reshuffling with a strong rally. Among them, the solar manufacturer Yuanjing performed the best—since Monday, its stock price surged from NT$13.65, continuously hitting the daily limit up, with a total increase of over 40% within just five trading days. By today’s close, it was locked at around NT$19.25. The gains also benefited related stocks such as Jinn Guoguang, Ritek, and Jingchen Technology, all of which hit the daily limit up, making the entire solar sector a market focus.

The core driving force behind this rally stems from Tesla CEO Elon Musk’s public discussion of the grand blueprint for the “Space AI Computing Center.” His vision is to deploy high-performance servers into space orbit via SpaceX, utilizing solar energy as a stable and nearly unlimited power supply. Once this vision was announced, it immediately sparked market speculation about new applications for the solar industry, especially for Yuanjing, which is already part of SpaceX’s supply chain, being seen as the most direct beneficiary.

Positive Catalysts Accumulating, but Do Not Ignore the Stark Reality of Fundamentals

Analysts point out that the current rally is driven by multiple factors, not just space-themed imagination. In addition to the space-related concept, the Chinese government recently launched a “storage” policy to alleviate excess capacity, which helps ease the price war pressures in the global solar market. Meanwhile, some Taiwanese solar companies have recently shown signs of revenue recovery, with market expectations of an industry bottoming out gradually rising, triggering a valuation rally among low-priced stocks.

However, investors must face a glaring contradiction—the huge gap between soaring stock prices and weak fundamentals. According to Yuanjing’s financial data, its cumulative revenue for the first three quarters was only NT$1.452 billion, with a net loss of NT$773 million, and a per-share loss of NT$1.9. This indicates that the company’s core business is still deep in losses and has not yet reached a self-sustaining stage.

Bright Future for Space Solar Power, but Commercialization Timeline Remains Uncertain

If Musk’s space AI computing project advances steadily, the demand for space-grade solar modules capable of withstanding extreme space environments (high radiation, low temperatures, low pressure) and with high conversion efficiency will indeed grow exponentially. Market forecasts even suggest that, besides solar manufacturers, satellite communication component suppliers such as Shengda Tech and Qiqi may also see new opportunities.

However, industry experts also calmly point out the practical challenges: space-grade solar modules need to achieve significant breakthroughs in conversion efficiency and durability in extreme environments. Heat dissipation technology is also a formidable challenge. Currently, related applications are mostly in early R&D validation stages, still a considerable distance from large-scale commercial use.

Investment Advice: Beware of Capital Flows and Strictly Manage Positions to Avoid Chasing High Risks

Analysts warn about the current solar stock wave. These stocks, often with low prices and active trading, tend to attract short-term capital flows, and many lack solid fundamental valuation bases. Those wishing to participate should closely monitor margin trading balances and major shareholder movements, and strictly control investment positions to avoid the risk of being trapped by chasing high prices.

Yuanjing’s management also admits that the overall solar industry remains at a low point this year. The operational recovery depends on government policies like the “Old to New” rooftop solar replacement program, which is expected to gradually boost demand from the second half of 2026. Overseas, the company plans to expand into the US and Japanese markets.

Market Outlook: Attractive Vision, Fundamentals Still Need Verification

Overall, solar stock prices have already reflected long-term prospects of space-based power applications. Whether they can be supported by fundamentals depends on three key factors: the specific progress of Musk’s plans, when Yuanjing and peers will see genuine profit improvements, and whether the global solar supply and demand will balance out. While optimistic about the theme, potential technical uncertainties and fundamental risks remain core issues that rational investors must face.