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    Daqo New Energy (DQ) Is Up 6.7% After Expanding Polysilicon Capacity And Efficiency Focus - Has The Bull Case Changed?

    Simply Wall St·12/11/2025 01:32:42
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    • Daqo New Energy recently expanded its polysilicon production capacity and integrated systems to enhance output quality and cost efficiency, supporting global photovoltaic supply chains.
    • This push to scale high-purity polysilicon production underscores Daqo’s effort to align its operations with rising global solar manufacturing demand.
    • Next, we’ll examine how Daqo’s expanded polysilicon capacity and efficiency focus may influence the company’s existing investment narrative.

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    Daqo New Energy Investment Narrative Recap

    To own Daqo New Energy, you need to believe high purity polysilicon remains central to global solar growth and that current industry imbalances will eventually ease. The latest expansion in integrated capacity reinforces Daqo’s role in photovoltaic supply chains, but it does not materially change the near term tension between higher output as a key catalyst and the ongoing risk of oversupply, low utilization rates and pricing pressure that continue to weigh on margins and profitability.

    The recent Q3 2025 update, with polysilicon production rising to 30,650 MT and full year guidance lifted to 121,000–124,000 MT, is most relevant here. It shows Daqo is already ramping volumes into a market where regulators are trying to enforce sales above cost, so the impact of this new capacity on the investment story will depend heavily on how quickly pricing and utilization improve across the industry.

    But investors also need to be aware that if sector overcapacity persists and selling prices stay weak for longer than expected, then...

    Read the full narrative on Daqo New Energy (it's free!)

    Daqo New Energy's narrative projects $2.4 billion revenue and $226.9 million earnings by 2028. This requires 58.5% yearly revenue growth and a $616.1 million earnings increase from -$389.2 million today.

    Uncover how Daqo New Energy's forecasts yield a $31.31 fair value, a 9% downside to its current price.

    Exploring Other Perspectives

    DQ 1-Year Stock Price Chart
    DQ 1-Year Stock Price Chart

    Four fair value estimates from the Simply Wall St Community span roughly US$31 to US$119 per share, highlighting wide disagreement on Daqo’s potential. Set these views against ongoing industry overcapacity that continues to pressure polysilicon prices, and you can see why it may pay to compare several different perspectives before forming a view on Daqo’s future performance.

    Explore 4 other fair value estimates on Daqo New Energy - why the stock might be worth over 3x more than the current price!

    Build Your Own Daqo New Energy Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.