Wall Street rises as materials and crypto stocks offset continued bond sell-off
Investing.com -- Goldman Sachs highlighted a group of U.S.-focused solar and storage stocks as top ideas for 2026, saying steadier utility-scale growth, rising data center power demand and a cleaner policy backdrop should support earnings and valuations.
The bank reiterated Buy ratings on First Solar, Nextracker, Array Technologies and Fluence, and said it sees a median upside of about 15% across its solar coverage, rising to roughly 28% for Buy-rated names.
Goldman said its preferred exposure remains utility-scale solar, particularly in the U.S., where incremental power demand from data centers is expected to translate more clearly into backlogs and financial results next year. It expects utility-scale solar deployments to grow about 3% year on year in 2026, while revenue growth for companies in its coverage could average closer to 15% as firms expand offerings and secure higher pricing.
By contrast, Goldman expects another reset in the U.S. residential market following the expiration of the 25D tax credit for solar cash and loan sales at the end of 2025. The bank said this should weigh on near-term residential demand but still sees medium-term support from rising utility rates and greater traction in third-party ownership models.
Among its focus names, Goldman said First Solar stands out for its booking outlook, potential for higher average selling prices and scope for capacity expansion. Nextracker was cited for execution and continued market share gains tied to its technology platform, while Array Technologies was flagged for improved execution that could help narrow its valuation gap with peers. Goldman also pointed to Fluence as a battery storage leader, with growth supported by rising data center demand.
Goldman said policy uncertainty that weighed on the sector through much of 2025 has eased, with fewer open questions heading into 2026. While final guidance on foreign entities of concern and the outcome of a U.S. trade investigation into polysilicon remain pending, the bank said the overall policy environment appears more supportive, particularly for domestic manufacturers.
Valuations, Goldman added, have recovered from early 2025 lows but remain well below historical levels and other power-related sectors, leaving room for further upside if demand trends play out as expected.
