By Reuters

TAIPEI, July 5 (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker, reported a 39.8% year-on-year rise in second-quarter revenue that beat market forecasts on ​strong demand for AI products, though it cautioned ​about "volatile" global politics.

Revenue for Nvidia's (NVDA.O) biggest server maker and ⁠Apple's (AAPL.O) top iPhone assembler jumped to T$2.513 trillion ($78.71 billion) in ​the April-June quarter, Foxconn (2317.TW) said in a statement on Sunday.

That ​ was above a T$2.372 trillion 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-on-year to T$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.

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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 Taiwan market (.TWII).

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

($1 = 31.9260 Taiwan ​dollars)

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