Daqo New Energy's RMB 6 billion AI deal faces revenue uncertainty

Daqo New Energy secured a RMB 6 billion AI energy solutions deal to offset declining polysilicon margins. The move comes amid persistent operating losses, margin contraction, and cash bleeding in legacy operations. Projected profits from AI segment fail to justify the company's $1.1 billion market cap under current assumptions. The pivot lacks operational synergy and raises balance sheet concerns with large capital outflows.