Two major core drivers support! Photovoltaic equipment continues to perform strongly; 14 stocks have risen over 50% this year.

Photovoltaic equipment performed strongly in the early trading session on February 27, with JunDa Shares, Shuangliang Energy Saving, and Yongzhen Shares hitting the daily limit; Juhe Materials surged over 10%.

Two Major Core Drivers Support

From the overall market perspective, the recent sustained strength of photovoltaic equipment is due to market imagination surrounding space-based photovoltaics. The core demand drivers for space photovoltaics come from the dual boost of commercial spaceflight and AI computing power.

Huaxin Securities stated that in commercial spaceflight, the orbital positions and frequency bands in low Earth orbit are scarce strategic resources. Countries are actively deploying satellite constellations to seize opportunities. Currently, there are about 15,000 satellites in orbit worldwide. Since the “Starlink” low Earth orbit constellation race was ignited, over 300 constellation plans have been submitted, with an expected deployment of over one million satellites, creating a continuous and rigid energy demand. Regarding AI computing power, as AI technology iterates, energy consumption for computing power grows exponentially, pushing infrastructure into space. Against this backdrop, the concept of “space data centers” has emerged, deploying AI-chip-equipped satellites in space and relying on space-based photovoltaics for continuous power supply to cope with future ground energy system pressures.

Recently, Tesla CEO Elon Musk’s support for space photovoltaics has further increased interest. In November 2025, Musk publicly stated that solar-powered AI satellites could become the most cost-effective AI computing power supply solution within five years, with plans to deploy 100 GW of solar AI satellites annually in low Earth orbit. In January 2026, Musk said at the Davos Forum that SpaceX and Tesla are advancing the U.S. photovoltaic manufacturing capacity, further confirming their extensive space photovoltaic plans. Not long ago, Musk’s team also collectively visited domestic photovoltaic companies.

Total Installed Capacity Exceeds 1200 GW?

In recent years, many countries worldwide have launched large constellation deployment plans, often consisting of thousands or even tens of thousands of satellites, mainly concentrated in low Earth orbit. Companies like SpaceX, Amazon, Astra Space are leading the deployment, while domestic entities such as CTC, State Grid, and Qianfan are also actively promoting.

According to research by Andrea D’Ambrosio’s team, considering long-term stability of the space environment, when satellite failure rate is 7%, the maximum capacity of low Earth orbit is about 12.6 million satellites, with an optimal annual launch scale of 2.7 million satellites. The higher the tolerated failure rate, the more satellites the orbit can carry, meaning greater orbital capacity.

Assuming an average power generation of 100 kW per satellite, the total installed capacity corresponding to this maximum capacity could reach 1260 GW, with an annual new installation space of up to 270 GW.

Ground Photovoltaics Going Global

According to Guotai Haitong, besides the development of low Earth orbit satellites and space computing power, data center photovoltaic and energy storage support are also promising. The increasing demand for computing power accelerates the need for stable, low-cost, and replicable photovoltaic + energy storage solutions for data centers. The logic of ground-based photovoltaic installation is shifting from power-driven to computing-driven.

With overseas installation demand releasing and China’s photovoltaic industry chain expanding abroad, domestic equipment manufacturers are seizing opportunities to go global. Dongwu Securities noted that since 2019, many Chinese photovoltaic companies have accelerated the construction of integrated capacity in Southeast Asia and other regions. Meanwhile, overseas countries such as the US, Europe, and India are focusing on building their own capacity, initiating a new wave of expansion. Chinese PV equipment manufacturers have secured numerous overseas orders. While following domestic PV clients abroad, they are also selling equipment to international clients building capacity in Europe, America, and India, gaining extensive experience.

Looking at the overseas revenue share of China’s four major PV equipment manufacturers, currently OtterV and Mawei have relatively faster overseas expansion, with overseas revenue shares of 23% and 20% in the first half of 2025, respectively. Jing Sheng Electric and Gaoce shares have overseas revenue shares of 11% and 8%. We believe that as PV capacity in the Middle East and other regions rapidly expands, the proportion of overseas revenue for domestic equipment manufacturers will have significant room to grow.

Image source: Dongwu Securities

14 Stocks Expected to Rise Over 50% in 2026

From the sector perspective, the PV equipment sector has been strong since 2026. As of the close of the early trading session on February 27, Liancheng CNC, OtterV, and Laplace have doubled, with increases of 153.19%, 112.99%, and 112.83%, respectively.

Overall, among 70 PV equipment stocks, 61 have risen since 2026, with an 87% probability of growth. Fourteen stocks have gained over 50%, with a median increase of 20.96%.

Among the top 20 stocks by growth, Liancheng CNC, Dico, GCL System Integration, JunDa Shares, Ero Energy, Haiyou New Materials, Yamatun, Yongzhen Shares, Shuangliang Energy Saving, Gaoce Shares, analysts forecast their 2026 performance will double year-over-year. Yongzhen Shares even surged by 1756.6%.

Looking ahead, GF Securities stated that AI giants are competing fiercely, and “computing power to the sky” has become a consensus. Under this trend, space photovoltaics as a primary energy source are expected to benefit deeply, potentially creating a market space worth hundreds of billions of yuan for PV equipment in the future.

Dongwu Securities believes that by 2025, fundamentals will be fully clarified. As excess capacity is cleared faster, industry standards and pricing mechanisms are gradually optimized, and supply-side structural improvements are evident, it is expected that in 2026, with overseas demand releasing and domestic market clearing completing, equipment orders will likely recover, and the sector will have strong cyclical repair potential.

(Source: Oriental Wealth Research Center)