TAIPEI, July 5 Reuters Taiwan39;s Foxconn, the world39;s largest contract electronics maker and Apple39;s biggest iPhone assembler, posted on Friday betterthanexpected quarterly revenue on AI server demand, and forecast continued growth in the current quarter.

The third quarter is traditionally the start of the season for Taiwan39;s tech companies to race to supply smartphones, tablets and other electronics to major vendors such as Apple for Western markets39; yearend holiday period.

Foxconn is also powering ahead due to strong demand for servers for artificial intelligence AI applications, and its customers include AI darling Nvidia.

This year39;s third quarter is expected to see revenue grow both yearonyear and compared with the previous quarter, Foxconn said in a statement.

Entering the peak season of the second half of the year, we anticipate our operation to gradually gain momentum, it said.

The company does not provide numerical forecast.

Foxconn, formally called Hon Hai Precision Industry Co Ltd, said revenue last month reached T490.7 billion 15.12 billion, up 16.1 yearonyear and at the secondhighest level for the same period.

For the second quarter, revenue soared 19.1 yearonyear to T1.55 trillion, beating a T1.51 trillion LSEG SmartEstimate, which gives greater weight to forecasts from analysts who are more consistently accurate, and a record high for the same period.

Secondquarter revenue in its cloud and networking products segment showed strong…