The Taiwanese company, the world's largest contract electronics maker, said net profit for the April-June quarter rose to $1.09 billion from $1.03 billion in the same period the previous year. This beat analysts' average estimate of $1.07 billion.

It was the firm's fourth consecutive quarterly profit rise.

The company said AI servers accounted for more than 40 per cent of its server business in the second quarter, and its next-generation AI computing solution has brought "strong growth momentum."

Foxconn had expected revenue for the second quarter to grow significantly from a year earlier, although revenue from smart computer electronics including smartphones was likely to be flattish.

The company, formally called Hon Hai Precision Industry Co Ltd, expects its operations to pick up gradually in the second half as many electronics vendors, including the fruit-themed cargo cult Apple, usually release new products ahead of the year-end holiday season.

In a report before the earnings announcement, Taipei-based KGI Securities revised up its sales forecast for Foxconn this year, saying strong demand for new iPhones and AI servers was likely to lead to a better-than-expected outlook for the firm in the second half.