Analysts identified Nextpower as the leading beneficiary of the Trump administration’s proposed restrictions on foreign inverter imports.
- Trump administration is reportedly drafting an FCC rule to restrict imports of certain foreign-made power inverters.
- Barclays, RBC Capital and Wells Fargo all said Nextpower could be the biggest winner if the proposed restrictions take effect, citing utility-scale solar’s reliance on imported inverters.
- The analysts also expect SolarEdge to outperform Enphase.
Nextpower Holding (NXT) stock is drawing attention as Wall Street firms agree that the company stands to benefit most from the Trump administration’s proposal to restrict imports of foreign-made power inverters.
Trump’s Proposed Inverter Ban Could Reshape U.S. Solar Market
The government is preparing a Federal Communications Commission rule that could prohibit imports of certain foreign-made power inverters, a move that analysts believe would reshape competition across parts of the solar industry.
Policymakers are concerned that inverters, devices that connect solar panels and battery storage systems to electricity networks, could be exploited to interfere with power infrastructure, said the report.
The initiative follows increasing scrutiny of Chinese technology used in critical U.S. systems and mirrors similar actions under consideration overseas.
Analysts broadly said that the biggest gains would likely go to companies serving the utility-scale solar market, where imported inverter products remain widely used.
Analysts See Opportunity For NXT
Barclays said Nextpower is likely to benefit most if the proposal becomes policy, as utility-scale solar projects continue to rely heavily on imported inverters.
The firm also expects SolarEdge Technologies (SEDG) to receive a greater boost than Enphase Energy (ENPH).
RBC Capital also expects only modest effects on Enphase and SolarEdge in the U.S., but believes Nextpower could gain more because the Chinese manufacturer Sungrow holds a larger position in the utility-scale inverter market.
The firm added that a comparable restriction in Europe would likely provide a bigger lift to Enphase and SolarEdge due to the stronger presence of Chinese suppliers there.
Wells Fargo likewise identified Nextpower as the primary beneficiary if the proposed restrictions are enacted. The firm said utility-scale solar remains the area with the greatest dependence on Chinese inverters, while residential installations already have relatively little exposure.
Nextpower stock edged 0.9% higher in Wednesday’s premarket.
Analysts added that limiting imported products could expand opportunities for domestic inverter manufacturers.
NXT Retail Traders View
On Stocktwits, retail sentiment for the stock remained bullish.
A user said, “Banning new Chinese inverters could be a real tailwind for non-Chinese suppliers. It could also make solar and storage projects more expensive if domestic supply cannot scale fast enough.”
NXT stock has gained 36% year-to-date.
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