Shares of Daqo New Energy Corp (NYSE: DQ) surged 10.54% on Wednesday, driven by optimism over the company's prospects as the polysilicon industry shows signs of recovery.

According to a report from Seeking Alpha, the polysilicon spot prices have bottomed out and are witnessing a moderate recovery after a prolonged downturn. This bodes well for Daqo, a leading manufacturer of high-purity polysilicon for the global solar photovoltaic industry.

The report highlights that Daqo has taken proactive measures to weather the industry consolidation by lowering its production capacity and capital expenditure guidance for 2024. This strategic move is expected to help the company preserve cash and position itself for a potential recovery.