Daqo New Energy Navigates Solar Downturn with Pivot to AI Infrastructure

The company reported revenue of $62.7 million for the quarter, a recovery from the $26.7 million recorded in the first three months of the year as sales volume climbed to 15,190 metric tons. While the average selling price for polysilicon remained suppressed at $4.04/kg, management noted that collective industry efforts to curb below-cost dumping and enforce stricter energy efficiency standards are beginning to stabilize spot prices. Daqo maintained a utilization rate of approximately 57% during the period, producing 43,675 metric tons of material.

To decouple from the cyclical nature of the solar market, Daqo is expanding into the AI data center sector. The company has secured an investment agreement to manufacture energy solutions—including solid-state transformers and storage systems—designed for high-voltage power architectures. This initiative is supported by the Daqo Group, leveraging decades of manufacturing expertise to establish a new earnings stream. With $1.92 billion in readily convertible assets and zero debt, the company maintains that its balance sheet remains resilient enough to fund this strategic transition while awaiting a broader solar industry recovery.