TAIPEI (Reuters) -Taiwan's Foxconn, the world's largest contract electronics maker, posted a 91% leap in first-quarter profit and beat the market forecast on strong demand for artificial intelligence servers, but gave a more conservative full-year outlook.

Net profit for January-March for Apple's ( AAPL ) top iPhone assembler and Nvidia's ( NVDA ) server maker came in at T$42.12 billion ($1.39 billion), versus the T$37.8 billion average of 13 analyst estimates compiled by LSEG.

Foxconn, formally Hon Hai Precision Industry ( HNHPF ), last month said January-March revenue jumped 24.2% to a record for that quarter on strong sales of AI servers.

In an earnings report, Foxconn said it should see significant on-year growth in the second quarter, with high double-digit growth year-on-year for AI servers and an accelerating volume production ramp-up.

But for full-year revenue, it forecast significant on-year growth, downgrading the outlook from a previous prediction of strong growth. It did not elaborate and the company does not provide numerical guidance.

A Sino-U.S. trade spat could dim prospects for Foxconn's outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing on Monday agreed to slash tariffs for at least 90 days.

Most of the iPhones Foxconn makes for Apple ( AAPL ) are assembled in China. Foxconn is also building a large manufacturing facility in Mexico - another target of U.S. President Donald Trump's tariffs - to produce AI servers for Nvidia ( NVDA ).

Foxconn has been looking to expand its footprint in electric vehicles, which it sees as a major future growth generator.

Subsidiary Foxtron Vehicle Technologies and Japanese automaker Mitsubishi Motors ( MMTOF ) last week announced the signing of a memorandum of understanding for the supply of an electric vehicle model.

Foxconn has previously said it would consider taking a stake in Nissan ( NSANF ) for cooperation. Japan's third-biggest automaker is striving to make its business leaner and more resilient after weak sales in China and its biggest market the United States.

Foxconn holds its earnings call at 3 p.m. (0700 GMT) in Taipei on Wednesday, where it will also update its outlook for the year.

Its shares have fallen 11.4% so far this year, hit by concerns about U.S. trade policy, compared with a 5.4% decline for the broader Taiwan index.

They closed up 3.2% on Wednesday ahead of the earnings call.

($1 = 30.2680 Taiwan dollars)