Taiwan-based contract electronics manufacturer Foxconn reported a stronger-than-expected 39.8% year-on-year increase in second-quarter revenue, driven by robust demand for artificial intelligence (AI) products, according to a company statement cited by Reuters.

Revenue for the April-June quarter rose to T$2.513 trillion (about $78.71 billion), exceeding the T$2.372 trillion consensus estimate compiled by LSEG SmartEstimate, which assigns greater weight to analysts with stronger forecasting records, Reuters reported.

The company’s cloud and networking products division, which includes AI servers, delivered strong growth during the quarter as demand for AI infrastructure remained resilient. Foxconn also said its smart consumer electronics business, which includes assembly of Apple’s iPhones, posted significant year-on-year growth, Reuters reported.

June revenue climbed 52.1% from a year earlier to a record T$821.8 billion for the month, underscoring the continued momentum in AI-related demand.

Looking ahead, Foxconn expects its business to expand both sequentially and annually in the third quarter, supported by continued growth in AI server racks. However, the company also flagged uncertainty stemming from the volatile global political and economic environment, Reuters reported.

Formally known as , Foxconn does not issue numerical financial forecasts.

The company is the world’s largest contract electronics manufacturer, the biggest server maker for Nvidia and the leading assembler of iPhones for Apple.

Foxconn’s shares have gained 4.3% so far this year, trailing the 61.5% rise in Taiwan’s broader market.

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