Should I buy Daqo New Energy stock in 2025?

What is Daqo New Energy?

How much is the Daqo New Energy stock?

The price of Daqo New Energy stock is rising this week. As of now, DQ is trading at $13.82 USD, marking a 1.54% gain over the past 24 hours and up 1.92% over the week.

The company’s current market capitalisation stands at $926.72 million, with an average three-month trading volume of 895,114 shares. No P/E ratio is available since the company is not currently profitable, and there is no dividend yield.

The stock’s beta is 0.58, indicating relatively low volatility compared to the broader market. For NZ investors, Daqo’s muted beta may present a stability factor, but it’s important to note that the stock has faced significant pricing swings driven by sector dynamics.

Our full analysis on the Daqo New Energy stock

After thoroughly reviewing Daqo New Energy’s latest financial results and analysing the stock’s performance over the past three years, our proprietary models have triangulated financial data, technical signals, and industry dynamics across global benchmarks and peer competitors. This comprehensive approach yields unique insights into Daqo’s positioning and outlook. So, why might Daqo New Energy stock once again become a strategic entry point into the solar technology sector in 2025?

Recent Performance and Market Context

Over the last 12 months, Daqo New Energy (NYSE: DQ) has seen its share price adjust substantially, down 35.06% year-on-year to US$13.82 as of 30 May 2025. Short-term indicators, however, suggest some stabilisation: the share price has advanced by 1.92% over the most recent week and gained 1.54% intraday, reflecting a shift in sentiment at key technical levels. While the last six months were marked by continued pressure (down 31%), this period of recalibration follows an industry-wide correction and positions the stock at levels not seen since its pre-pandemic expansion, offering a fresh basis for revaluation.

On a macro level, the global solar and semiconductor materials sector remains on an undeniable long-term growth path, driven by accelerating renewable energy adoption and decarbonisation targets in key economies. Despite short-term headwinds—primarily industry overcapacity—consensus forecasts project the photovoltaic-grade polysilicon market to expand at a 9.9% CAGR through 2030, providing a robust structural tailwind. As economic and policy cycles evolve, China’s anticipated support for the solar sector may serve as a powerful catalyst for industry leaders such as Daqo.

Importantly for NZ investors, Daqo’s NYSE listing and USD-denominated trading provide exposure to a high-growth, globally relevant vertical, which is less correlated to Australasian financial cycles, aiding diversification at a time when energy transition themes are attracting increased capital flows.

Technical Analysis

Daqo’s technical profile currently reflects a classical cyclical inflection. The stock is trading just above key 52-week support at US$13.20, with nearby resistance at US$14.16. The longer-term range—US$12.41 to US$30.85—shows Daqo’s high volatility but also outlines significant upside potential should sentiment shift. The Relative Strength Index (RSI 14 days) stands at 43.32, neutral but approaching oversold territory. The MACD (-0.26) continues to show a bearish signal; however, a flattening of selling momentum may presage a base formation.

Price action remains beneath all major moving averages (20-, 50-, 100-, and 200-day), confirming a persistent downtrend—which historically can give way to powerful reversals, especially as fundamental news flow turns positive. Intermediate-term traders often look for reclamation of the 20-day moving average (now US$13.72) as a first sign of strength. With the stock consolidating above major support zones and technical selling pressure already extensively played out, the risk-reward profile appears to be improving for new bullish positioning.

• The $13.20 support is holding after multiple tests, suggesting resilience and potential exhaustion of sellers.
• The stock is at an extreme end of its historical price range; moves off such levels have previously led to swift upside.
• Volatility contraction and rising intraday prices (plus 1.54% on the day) point to possible accumulation ahead of catalysts.

Fundamental Analysis

From a fundamental perspective, Daqo stands out through its deep financial reserves and high strategic relevance within the solar material supply chain. Despite reporting revenue of $123.9 million in Q1 2025 (compared to $195.4 million in Q4 2024 and $415 million in Q1 2024), and a net loss of $71.8 million, it’s essential to contextualise this performance within the cyclical downturn caused by sector overcapacity. Notably, the company has improved its net loss by 60% year-on-year—evidence of aggressive cost optimisation and operational discipline.

Perhaps most compelling is Daqo’s fortress balance sheet: $2.09 billion in cash, an industry-leading current ratio of 5.62, and essentially no significant debt. This financial strength permits continued investment in process innovation and capacity upgrades, while providing a substantial buffer to weather temporary market challenges—a critical differentiator as weaker peers may exit or consolidate. Daqo’s leadership in high-purity polysilicon, coupled with strong institutional trust (51.68% institutional holding), underpins its resilience and potential for rebound as sector conditions normalise.

Valuation also deserves focus. With a market capitalisation of $926.72 million and share price near multi-year lows, the market, in our view, may be discounting a scenario of prolonged sector malaise, overlooking Daqo’s cyclical leverage. Analyst consensus places the 12-month price target at an average of $21.10, suggesting upside of over 50% from current levels. While the company is not currently profitable and thus lacks a meaningful P/E, forward estimates and historical averages (price-to-sales, price-to-book) place Daqo at a significant discount to both global and regional peers, reinforcing the case for consideration by value-oriented investors.

• Leading global share in high-purity polysilicon for photovoltaic use.
• Robust liquidity to invest counter-cyclically and outlast periods of pricing pressure.
• Ongoing investment in process automation, translating to lower unit costs and carbon intensity.

Volume and Liquidity

Average daily trading volume over the past three months sits at 895,114 shares—ample liquidity for institutional and larger retail participants, and a clear indication of enduring market interest. The free float, with relatively low insider ownership (18.13%) and high institutional presence, supports dynamic revaluation potential as sentiment changes or placement activity increases. For NZ-based investors, this liquid trading environment provides flexible entry and exit points—particularly valuable in volatile, catalyst-driven equities.

Catalysts and Positive Outlook

Several forward-looking catalysts could set the stage for a new bullish phase in Daqo’s share price:

• Macro Policy Support: Chinese policy action supporting renewable energy and addressing sector overcapacity is increasingly expected. Should Beijing implement new stimuli—either through subsidies, minimum price policies, or strategic reserves—leading players like Daqo are best positioned to capture incremental upside.
• Polysilicon Price Stabilisation: Early signs of floor formation in polysilicon prices are emerging as undercapitalised competitors reduce output, while Daqo, with its financial strength, can maintain strategic inventory and negotiate from a position of strength as supply and demand rebalance.
• Global Solar Acceleration: With a projected PV polysilicon market growth of 9.9% CAGR toward 2030, Daqo’s competitive advantages ensure it remains a likely beneficiary of both secular demand and the industry’s eventual reconsolidation.
• Innovation and Sustainability: With no significant debt and strong liquidity, Daqo has the flexibility to lead in process innovations that enhance ESG profiles and lower costs—qualities increasingly prized by global investors.
• Potential Mergers & Partnerships: The sector’s reconfiguration may accelerate strategic activity; as a financially sound peer, Daqo is positioned to harness opportunities arising from industry M&A and joint ventures.

Investment Strategies

Given its compelling context, Daqo New Energy seems to represent an excellent opportunity for discerning investors to position at or near the lower limits of its historical trading range—particularly as macro and sector-specific catalysts loom.

• Short-term: Momentum and mean-reversion traders may seek an initial upside move upon confirmation above the 20-day moving average and in response to upcoming policy or earnings newsflow.
• Medium-term: Investors anticipating sector normalisation or policy support may view current levels as a foundation for a multi-quarter recovery, leveraging both upside to prior technical resistance ($14.16, $17.50, and beyond) and consensus price targets.
• Long-term: For those with a strategic horizon, entry at depressed valuations, backed by a structurally strong issuer at the forefront of solar value chains, positions portfolios to benefit from the next megacycle in renewable technology, where high-purity polysilicon will be critical.

For NZ market participants, these entry points provide diversification from Australasian core holdings, access to USD-denominated growth, and alignment with global climate and technology trends.

Is it the Right Time to Buy Daqo New Energy?

Daqo New Energy’s convergence of robust liquidity, sector leadership, and deep discount to consensus analyst targets may be signalling the dawn of a new value phase for the stock. As near-term technicals indicate possible seller exhaustion, and with multiple fundamental catalysts waiting in the wings—including likely policy action and industry rationalisation—the timing for a fresh look appears highly attractive. The company’s ability to withstand cyclical downturns, while retaining capacity for innovation and strategic investment, is a rare asset in the current environment.

For investors attuned to the rhythms of global technology and energy transformation—particularly those seeking to diversify beyond the NZX and enjoy USD-linked returns—Daqo New Energy stands out for its compelling risk/reward profile at this juncture. The fundamentals justify renewed interest, and the potential for a re-rating is increasingly evident as macro and micro headwinds begin to wane.

In sum: with its current share price near critical support, powerful balance sheet, and clear alignment to future solar expansion, Daqo New Energy seems poised for reappraisal. Investors with an eye for opportunity in the renewable tech sector may find that the upcoming quarters deliver precisely the structural and cyclical turnaround that often precedes outsized returns.

How to buy Daqo New Energy stock in New Zealand?

Buying Daqo New Energy stock online is both simple and secure when you use a regulated broker serving New Zealand investors. You have two main methods: buying shares directly (spot buying), which makes you a real shareholder, or trading Contracts for Difference (CFDs), which lets you speculate on the share price with leverage. Both approaches can be managed fully online, with your account in New Zealand dollars (NZD). To help you find the platform that best suits your needs, you’ll find a detailed broker comparison further down this page.

Spot buying

When you buy Daqo New Energy (NYSE: DQ) shares “for cash,” you become a part-owner of the company. This is the classic buy-and-hold approach that suits investors looking for long-term participation in the business. Typically, NZ brokers charge a fixed commission per order, often between NZ$5 and NZ$15, regardless of the amount invested.

Example

If the Daqo New Energy share price is about USD $13.82 (around NZ$22), investing NZ$1,000 allows you to buy roughly 45 shares (NZ$990 worth of shares, plus a NZ$10 brokerage fee).

✔️ Gain scenario: If the share price increases by 10% to NZ$24.20 per share, your investment is now worth NZ$1,100.

Result: +NZ$100 gross gain, or +10% on your stake.

Trading via CFD

CFD trading enables you to speculate on Daqo New Energy’s price movements without actually owning the underlying shares. CFDs let you use leverage—meaning you can control a larger market position with a smaller capital outlay. With 5x leverage, your exposure is five times your initial stake. The main costs here include the spread (difference between buy and sell prices) and overnight financing fees if you hold leveraged positions for multiple days.

Example

You open a CFD position on Daqo New Energy with NZ$1,000 and 5× leverage, meaning your market exposure is NZ$5,000.

✔️ Gain scenario: If Daqo’s share price rises by 8%, your position returns 8% × 5 = 40%.

Result: +NZ$400 gain on your original NZ$1,000 (excluding fees).

Final advice

Before investing, it’s important to compare brokers’ fees, market access, and account features, as they can differ significantly. Your choice between spot buying and CFDs will depend on your investment goals, risk appetite, and trading style. Explore the broker comparison further down this page to identify the platform best matched to your strategy. As always, invest thoughtfully and according to your objectives.

Our 7 tips for buying Daqo New Energy stock

The latest news about Daqo New Energy

Daqo New Energy recorded a 1.92% share price increase over the past week, hinting at stabilization. This upward move, although modest, suggests that the market may be responding positively to expectations of stabilization in polysilicon prices, which is crucial for the company's recovery after several challenging quarters. The recent improvement follows a significant downward trend, so this change—while still within a generally bearish context—could reflect early signs of renewed investor confidence in a sector vital to global solar energy supply chains, including those serving New Zealand’s increasingly active renewable energy landscape.

The company reported a considerable reduction in net losses in Q1 2025, marking operational improvement. Daqo New Energy reduced its net loss to $71.8 million in Q1 2025, a 60% improvement from the $180.2 million loss recorded in Q1 2024. Although revenue sharply declined due to lower polysilicon prices and significant overcapacity, this improved cost management and operational efficiency is a constructive signal for long-term investors in regions emphasizing sustainable growth, such as New Zealand, where clean energy strategies are central to government and business initiatives.

Daqo’s liquidity remains robust, with over $2 billion in cash and no significant debt, ensuring financial resilience. The company’s cash position of $2.09 billion and a high liquidity ratio of 5.62 provide a strong buffer in a volatile market environment. This solid financial foundation enables Daqo to weather ongoing industry headwinds and to invest in strategic opportunities that could support growth in international markets, including potential Australasian supply agreements as the region expands its solar infrastructure.

The long-term polysilicon PV market is projected to grow at a 9.9% CAGR until 2030, benefiting suppliers like Daqo. Despite current global overcapacity, expert forecasts anticipate a significant uptrend in polysilicon demand driven by the acceleration of solar installations worldwide. This positive outlook is particularly pertinent for New Zealand, which is rapidly scaling its solar energy capacity, making Daqo a potentially attractive supplier for local firms seeking reliable, high-purity polysilicon sources to fuel the domestic energy transition.

Though Daqo operates from China, no direct New Zealand presence exists, but global supply chain links remain relevant to NZ analysts. While Daqo does not have physical operations or offices in New Zealand, its status as a major polysilicon producer connects it indirectly to the local renewable sector through international value chains. As New Zealand energy companies seek stable upstream suppliers for solar projects, trends in Daqo’s performance and industry stability can offer valuable context for regional investment decisions and procurement strategies.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.