Taiwan server rail maker Nan Jun International says its weakest quarter is behind it, and new AI-related products should push growth back up for the rest of the year — good news for investors.

• The second quarter was soft because parts shortages hit standard servers and customers slowed orders.
• Profit margins still hit a record high, helped by cheaper production in Vietnam and pricier high-end products.
• Vera Rubin rails started shipping in small volumes in August, and ASIC rails could start as soon as September.
• Vietnam is the cost advantage: local steel runs 20-30% cheaper than Taiwan, and that plant could pass 30% of revenue this quarter.
• First-half profit already beat all of last year, with earnings per share up more than fivefold from a year ago.

Outlook: Growth should resume from the third quarter, with steady AI product shipments in the fourth quarter setting up next year.