Key iPhone assembler Hon Hai Precision Industry Co. reported a stronger-than-expected quarterly profit on persistent demand for servers powering AI applications.

The company, also known as Foxconn, said on Thursday net income in the September quarter was NT$49.3 billion ($1.5 billion), beating an average estimate of NT$45.7 billion. The Taiwanese assembler previously said quarterly revenue grew 20% to a record NT$1.85 trillion, aided by solid orders for servers containing Nvidia Corp.'s cutting-edge chips.