Enphase Energy (ENPH) shares tumbled 18% to $56.07 by Friday's close, marking the steepest decline among solar stocks as stronger-than-expected U.S. jobs data sent bond yields soaring and reignited concerns about prolonged high interest rates. The stock, which had risen earlier in the week, reversed sharply as trading volume surged to 10.4 million shares, the highest during the June 1-5 period.
The Nasdaq-listed company ended the week approximately 12% below Monday's close, despite reaching an intraweek high of $72.80. With U.S. equity markets closed for the weekend, investors will focus on Monday's open to gauge whether the selloff will continue.
The broader market also felt the impact. The Nasdaq Composite, heavily weighted with technology and growth stocks, slid roughly 4.2% on Friday as investors reacted to a stronger-than-expected May jobs report. The Bureau of Labor Statistics reported payrolls increased by 172,000, while the unemployment rate held steady at 4.3%. Bond yields jumped as worries intensified that the Federal Reserve might keep interest rates elevated for longer.
Solar stocks were hit hard across the board. SolarEdge (SEDG) fell 13.6%, First Solar (FSLR) dropped 11.4%, and the Invesco Solar ETF (TAN) declined 9.1%. Enphase shares sank the most among the group.
Enphase's operating numbers remain volatile. The company, known for its microinverters and battery systems, reported first-quarter revenue of $282.9 million, down from $343.3 million in the previous quarter. U.S. revenue fell about 23% following the expiration of the Section 25D federal clean-energy tax credit and seasonal patterns. U.S. sell-through demand slid 48% quarter over quarter.
For the second quarter, Enphase is guiding for revenue between $280 million and $310 million. That figure includes approximately $85 million in "safe harbor" shipments—products shipped or set aside so buyers can maintain tax-credit status. The company said non-GAAP gross margin is expected to take about a 3-point hit from tariffs.
Some investors view Enphase as a potential play on power equipment for AI data centers. TD Cowen recently raised its price target for Enphase to $70 from $35, maintaining a Hold rating. The firm noted that its discussion with management focused on Enphase's solid-state transformer (SST), designed to convert power more efficiently for heavy electrical loads. Enphase has also highlighted its gallium nitride (GaN) technology, which it says enables smaller, more efficient power electronics.
Analyst opinions remain mixed. Goldman Sachs raised its price target to $57 and kept a Buy rating, while the consensus remains at Hold with an average target of $44.24. Roth Capital Partners analyst Philip Shen flagged tax equity as a new near-term concern, warning that a slowdown in this market could limit capital availability for third-party owners who finance leased home solar systems, potentially weighing on installations in 2026.
Looking ahead, shares could rebound if bond yields fall or if investors assign a higher multiple to Enphase's data-center ambitions. However, risks persist: residential demand may stay soft, tariffs could continue to pressure margins, safe-harbor shipments might not sustain, and policy uncertainty could keep impacting installers. Enphase lists demand swings, customer buying patterns, tax credits, tariffs, incentives, and regulation as significant risks—factors that remain central for a company still closely tied to U.S. residential solar markets.
