Artificial intelligence continued to fuel strong growth for Taiwanese electronics giant Foxconn, as the world's largest contract electronics manufacturer reported better-than-expected second-quarter revenue, driven by surging demand for AI-related products.

The company, officially known as Hon Hai Precision Industry, announced on Sunday that revenue for the April-to-June quarter climbed 39.8% year-on-year to T$2.513 trillion (US$78.71 billion), comfortably surpassing market expectations.

Analysts surveyed by LSEG had projected revenue of T$2.372 trillion, making Foxconn's latest performance another indication of the growing global investment in artificial intelligence infrastructure.

The impressive results were largely fueled by robust sales in the company's cloud and networking products division, which manufactures AI servers for leading technology companies. Foxconn is Nvidia's largest AI server manufacturing partner and also serves as Apple's primary iPhone assembler, placing it at the center of two of the world's fastest-growing technology markets.

According to the company, demand for AI products remained exceptionally strong throughout the quarter, significantly boosting revenue from its enterprise technology business.

At the same time, its smart consumer electronics division, which includes iPhone manufacturing, also recorded significant growth, providing an additional lift to overall performance.

June proved particularly strong for the company. Monthly revenue surged 52.1% compared with the same period last year, reaching T$821.8 billion, the highest June revenue in Foxconn's history.

Looking ahead, the electronics manufacturer expects business momentum to continue into the third quarter.

The company said operations are projected to grow both quarter-on-quarter and year-on-year, with demand for AI server racks expected to maintain its upward trajectory as technology companies continue expanding their artificial intelligence capabilities.

Despite the optimistic outlook, Foxconn cautioned that external risks remain.

"It remains necessary to monitor the impact of the volatile global political and economic situation," the company said.

Foxconn did not elaborate on the specific risks but, like many global manufacturers, continues to navigate uncertainty stemming from geopolitical tensions, shifting trade policies and broader economic conditions.

The company traditionally does not issue detailed financial guidance or numerical earnings forecasts.

While Foxconn's business has benefited from the AI investment boom, its stock performance has been relatively modest compared with Taiwan's broader technology market.

Foxconn shares have risen 4.3% since the beginning of the year, significantly lagging the 61.5% gain recorded by Taiwan's benchmark market index over the same period.

Ahead of the revenue announcement, Foxconn's shares closed 0.6% higher on Friday, while Taiwan's benchmark stock index ended the trading session largely unchanged.

The latest results reinforce Foxconn's growing role in the global AI supply chain, with demand for AI servers increasingly offsetting fluctuations in the consumer electronics market and positioning the company for continued growth as investment in artificial intelligence accelerates.