NEW TAIPEI, Taiwan May 29 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, has "immense confidence" in its growth momentum because of soaring AI demand, Chairman Young Liu said on Friday.

The company, Nvidia's NVDA.O biggest server maker and Apple's AAPL.O top iPhone assembler, this month reported a 19% rise in first-quarter profit versus the same period a year earlier, beating expectations due to strong global demand for AI products.

Liu, speaking at an annual shareholders meeting in Taipei's neighbouring city of New Taipei, said AI remains highly sought after, with capital spending by the major cloud service providers already exceeding $700 billion this year.

"Their capital expenditure is our market. It has already reached $700 billion, and their capital expenditure next year is expected to potentially reach $1 trillion. This gives us immense confidence in our future growth momentum," he said.

The company, formally called Hon Hai Precision Industry, said this month it expects its capital expenditures to grow by 30% this year from last year's T$174 billion ($5.55 billion) as it expands manufacturing capacity for AI servers.

The company's shares have risen 19% so far this year, underperforming the broader Taiwan index's .TWII 54% gain.

($1 = 31.3720 Taiwan dollars)