Mai-Ke reported a sharp recovery in profitability as mass production of new thermal modules for a major cloud service provider began, helping the Taiwan-based manufacturer move past a first-quarter model transition that had weighed on AI-related demand. First-half net profit rose 189.1% year over year to NT$112 million, or about $3.5 million, with EPS of NT$1.66, while cumulative revenue reached a record NT$1.9 billion, up 18.23%. The improvement was especially visible in the second quarter. Gross margin rebounded to 21.46%, up 3.26 percentage points from the prior quarter, and operating margin rose to 10.74% from 6.55%. Quarterly net profit climbed to NT$67.57 million, or about $2.1 million, with EPS of NT$1.00, well above NT$0.66 in the first quarter. Mai-Ke said the earlier transition for its major CSP client had temporarily slowed pull-in for AI thermal products, but that phase has now ended. Momentum continued into July, when consolidated revenue rose to a record NT$553 million, up 9.9% from June and 31.25% from a year earlier, marking a second straight month above NT$500 million. Market sources tied the gain mainly to sustained demand for the major CSP client's new products. Looking ahead, institutional investors expect revenue to strengthen quarter by quarter in the second half, while foreign brokerages project full-year profit could double versus 2025 and the expansion could continue through 2027. The company is also seen benefiting from rising demand for ASIC (application-specific integrated circuit) servers, which are becoming a key driver of thermal management demand in AI infrastructure. DIGITIMES Research estimates NVIDIA GPU server shipments will grow 43.8% year over year in 2026, while ASIC server shipments will rise 64.2%, suggesting Mai-Ke could gain further as its major CSP client is described as a leading ASIC AI server player.