AsianFin -- Hon Hai Precision Industry Co. posted a stronger-than-expected 27% profit increase in the June quarter and predicted rapid growth from its AI server business.

The Taiwanese company, which assembles Nvidia Corp. servers and Apple Inc. iPhones, reported net income of NT$44.36 billion ($1.5 billion), beating analysts’ average estimate of NT$36.14 billion. Sales for the period rose 16%.

Hon Hai, also known as Foxconn, expects current-quarter revenue from AI-focused servers to surge 170%, making them a key growth driver amid sluggish consumer tech demand. The firm now anticipates revenue from smart consumer electronics — including iPhone assembly — will decline this year rather than remain flat, as the segment faces potential U.S. tariffs.