First Solar is uniquely positioned to benefit from rising electricity demand from artificial intelligence as Big Tech companies seek clean energy to power the proliferation of data centers, according to UBS analysts. First Solar's earnings are expected to surge 374% to $36.74 per share in 2027, analysts led by Jon Windham told clients in a research note Tuesday.

UBS has raised its stock price target for First Solar by $18 to $270 per share, implying upside of about 38% from Monday's closing price. "In our view, FSLR is an overlooked, direct beneficiary of increasing AI-driven electricity demand," Windham and his team told clients in their note. AI uses 10 times more electricity than traditional Google search, according to UBS.

As electricity demand from AI grows, Amazon, Microsoft, Meta and Alphabet's Google unit have committed to buying renewable power that matches their consumption. Utility-scale solar represents 80% of the corporate power purchase agreements over the past five years, and the four tech companies represent 40% of utility-scale solar demand, according to UBS. First Solar's share of the utility-scale market has grown to 35% in 2022, up from 15% in 2018, the bank found.

U.S. protectionism, IRA benefits UBS previously viewed First Solar as a high-cost domestic solar module manufacturer that was disadvantaged against low-cost suppliers in China, which dominates the global solar market and supply chain.

But the U.S. imposition of tariffs on China and domestic manu.