The combined market value of the top four firms fell by 40%.

While new industries like artificial intelligence are drawing investors, the quest to limit the pace of global warming is driving demand for solar panels to record highs. Solar stocks are sliding, weakening profits, and raising fears about factory overcapacity.

By 2030, the world will have a total of 5,300 gigawatts of power.

After a startling run that saw Longe Green Energy Technology Co., the largest producer of solar equipment in the world, more than quintuple its share price from the beginning of 2020 to the end of 2021, solar energy stocks plunged.

The situation started to shift in the second half of last year when new factories were opened to relieve a production bottleneck in polysilicon, a crucial component used to make panels, which led to lower pricing throughout the supply chain.

According to Dennis Yip, an analyst at Daiwa Capital Markets, the situation is also affected by the fact that some investors are looking to shift some capital from the clean energy sector to the generative AI sector.

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