30% revenue growth, excellent ROIC and billions in profits thanks to the AI boom

In the second quarter of this year, the technology networking solutions maker surprised the market by increasing revenue by more than 30% year-over-year and earning nearly $900 million in net income. As interest from big players like Microsoft and Meta in its products continues to grow, management raised its full-year outlook. At the same time, however, investors are wondering whether the share price is still in line with reality after the sharp rise.

Top points of the analysis

• Q2 2025 revenue up 30.4% YoY to $2.2bn, beating market expectations.

• Net profit reached USD 888 million, EPS of USD 0.70 (non-GAAP USD 0.73), operating profit exceeded a billion for the first time.

• Gross margin of 65% was one of the highest in the technology sector, demonstrating the company's strong pricing power.

• Management raised its full-year growth guidance to 17% from the original 25 %signaling a continued demand boom.

• Key customers Microsoft and Meta are increasing investment in AI infrastructure, a key growth…