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Daqo New Energy to Invest Up to RMB 6 Billion in AI Data Center Energy Solutions Base

Tipranks - Thu Jun 4, 8:44AM CDT

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The latest update is out from Daqo New Energy ( (DQ) ).

On June 3, 2026, Daqo New Energy said its subsidiary Daqo Shanghai signed an investment agreement with the Kunshan Economic and Technological Development Zone to build a new manufacturing base for next-generation energy solutions for AI data centers. The facility will focus on R&D, manufacturing and sales of energy storage systems, solid-state transformers, solid-state circuit breakers and solid-state batteries, in a two-phase project initially funded with about RMB 2.1 billion and expected to total roughly RMB 6 billion, though the company said the eventual impact on its financial performance remains uncertain.

Chief executive Xiang Xu framed the Kunshan project as a strategic expansion beyond polysilicon into vertically integrated power infrastructure tailored to rapidly growing AI data centers. The initiative aims to diversify Daqo’s product portfolio and create new growth engines tied to the global energy transition, potentially reshaping its role in both the renewable energy and smart power equipment markets if execution and market demand align.

The most recent analyst rating on (DQ) stock is a Hold
with a $19.00 price target.
To see the full list of analyst forecasts on Daqo New Energy stock,
see the DQ Stock Forecast page.

Spark’s Take on DQ Stock

According to Spark, TipRanks’ AI Analyst, DQ is a Neutral.

The score is held down primarily by sharply weakened profitability and cash generation (losses, negative margins, and free-cash-flow burn). Technicals also remain bearish with the stock below key moving averages and negative MACD. These are partly offset by a very strong balance sheet and liquidity position highlighted on the earnings call, which improves staying power while the company waits for pricing/policy conditions to improve.

To see Spark’s full report on DQ stock,
click here.

More about Daqo New Energy

Daqo New Energy Corp. is a leading Chinese manufacturer of high-purity polysilicon for the global solar photovoltaic industry. Founded in 2007, the company supplies polysilicon to downstream manufacturers that convert it into ingots, wafers, cells and modules, and operates with a total nameplate capacity of 305,000 metric tons, positioning it among the lowest-cost producers worldwide.

Average Trading Volume: 758,307

Technical Sentiment Signal: Strong Sell

Current Market Cap: $1.14B

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