Taiwan's Foxconn, the world's biggest electronics contractor, reported an annual increase of 39.8% in second-quarter revenue that beat market forecasts driven by ​strong demand for artificial intelligence products, although the company cautioned ​about "volatile" global politics.

Revenue for Nvidia's biggest server maker and ⁠Apple's top iPhone assembler jumped to NT$2.513 trillion ($78.71 billion) in ​the April-June quarter, Foxconn said in a statement on Sunday.

That ​was above a NT$2.372 trillion projected in LSEG SmartEstimate, which gives greater weight to forecasts from analysts who are more consistently accurate.

Strong AI demand led ​to robust revenue growth for its cloud and networking products ​division, while smart consumer electronics, which includes iPhones, posted "significant" growth, the company ‌said.

June ⁠revenue alone rose 52.1% year-over-year to NT$821.8 billion, a record for that month.

Operations are expected to grow both quarter-on-quarter and year-on-year in the third quarter, with AI racks maintaining a ​growth trend, the ​company said.

However, "it ⁠remains necessary to monitor the impact of the volatile global political and economic situation," Foxconn ​said, without elaborating.

Foxconn, formally called Hon Hai Precision ​Industry, ⁠does not provide numerical forecasts.

The company's shares have gained 4.3% this year, underperforming the 61.5% rise for the Taiwanese market.

The stock ⁠closed ​up 0.6% on Friday ahead of the ​revenue data release. The benchmark index ended the day flat.