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.

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.

Taiwan's Foxconn, the world's largest contract electronics maker, reported Thursday that its second-quarter operating profit rose 27% year over year, as it leans into its artificial intelligence server business.