Foxconn expects higher third-quarter revenue, it said on Thursday, on robust demand for artificial intelligence servers, which helped the world's largest contract electronics maker report a forecast-beating 27% increase in second-quarter profit.

Foxconn, also known as Hon Hai Technology Group, reported a 27% rise in quarterly profits as demand for AI servers grows. The company expects year-on-year AI server revenue growth of more than 170% in the third quarter.

Foxconn on Thursday forecast a significant rise in third-quarter revenue as the world's biggest iPhone maker said it had for the first time made more money from its AI server business than from smart electronics last quarter.