<div id="readability-page-1"><p><strong>Nvidia</strong> <span>(NVDA<span> -2.87%</span>)</span> stock jumped 17% in June, according to data provided by S&amp;P Global Market Intelligence. It reported a phenomenal earnings report at the end of May, and that boosted investor confidence through June.</p> <h2>An AI giant with no competition</h2> <p>Nvidia has exploded from its one-time focus on the gaming industry to become a serious force in the development of generative artificial intelligence (AI). It has as much as 95% of the AI semiconductor market, and the biggest names in the industry, like <strong>Amazon</strong> and <strong>Meta Platforms</strong>, rely on its premium products to drive their AI platforms.</p> <div><p><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjM2NDUvcGVyc29uLXdhdGNoaW5nLW1vbmV5LWdyb3cuanBnJnc9NzAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="467" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjM2NDUvcGVyc29uLXdhdGNoaW5nLW1vbmV5LWdyb3cuanBnJnc9NzAw"/></p><p>Image source: Getty Images.</p> </div> <p>These were some of the highlights from the 2026 fiscal first quarter (ended April 27):</p> <ul> <li>Revenue increased 69% year over year, including a 73% increase in data center sales.</li> <li>Net income increased from $0.60 last year to $0.76 this year.</li> <li>It released two new AI technologies, Blackwell Ultra and Dynamo.</li> </ul> <p>The data center opportunity is of particular importance. Data centers are the huge AI factories where companies train their large language models (LLMs). There were 100 Nvidia-powered data centers launched in the first quarter, double from last year, and they're also using double the amount of chips year over year. This segment should be a continued source of high growth for Nvidia.</p>  <p>However, investors shouldn't discount the company's other segments, which are also growing rapidly. It has robust gaming and auto segments, and although Nvidia became a household name because of AI, it has a diversified business that makes it stronger.</p> <h2>Reaching new highs</h2> <p>Nvidia stock had fallen earlier this year as fears about tariffs and competition worried the market. It appears, for now at least, that those worries are unfounded, and smart investors scooped up shares on the dip.</p> <p>It's still reasonably priced relative to its growth prospects. Wall Street sees earnings per share (EPS) for this year growing from $2.99 to $4.29 and reaching $5.76 next year. That's a 39% compound annual growth rate, and Nvidia stock trades at a forward one-year P/E ratio of 27.</p> <p>Even if you didn't manage the press the buy button, it's not too late. Nvidia stock has plenty of life left in it as AI keeps exploding, and Nvidia powers that growth. It won't be able to create the same kind of shareholder wealth that it did for early investors, but it should keep rewarding patient investors over the long haul.</p>                                                                            </div>

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<p>Nvidia's stock surged 17% in June following a strong earnings report, with revenue up 69% year-over-year and a significant increase in data center sales. The company dominates the AI semiconductor market, supplying major firms like Amazon and Meta. Despite earlier concerns about competition, Nvidia's diversified business, including gaming and automotive segments, remains robust. Analysts project a 39% compound annual growth rate in earnings per share, indicating continued growth potential for investors in the AI sector.</p>

- Nvidia's stock surged 17% in June following a strong earnings report, reflecting increased investor confidence.  
- The company dominates the AI semiconductor market with 95% share and reported a 69% year-over-year revenue increase, driven by data center sales.  
- Despite earlier concerns about competition, Nvidia's diversified business and growth in AI technologies position it well for continued success.

Why Nvidia Stock Soared 17% in June