Nvidia Partner Hon Hai Expects AI Sales to Double as Phones Wane

Hon Hai Precision Industry Co. expects sales of servers to more than double this quarter while its consumer electronics business dwindles, underscoring how it’s relying on the AI boom to offset volatile iPhone sales.

Hon Hai, which assembles Nvidia Corp. servers and Apple Inc. gadgets, posted a better-than-projected 27% rise in net income in the June quarter. It predicted a 170% rise in revenue from servers made for artificial intelligence tasks during the current three-month period. But executives warned the smart consumer electronics business, which faces potential US tariffs, should shrink this year.

Hon Hai is navigating abrupt geopolitical ...