Why Nvidia Stock Soared 17% in June
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Nvidia (NVDA 2. 62%) stock jumped 17% in June, according to data vided by S&P Global Market Intelligence. It reported a phenomenal earnings report at the end of May, and that...
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July 2, 2025
08:11 AM
The Motley Fool
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Nvidia (NVDA 2. 62%) stock jumped 17% in June, according to data vided by S&P Global Market Intelligence
It reported a phenomenal earnings report at the end of May, and that boosted investor confidence through June
An AI giant with no competition 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, Amazon and Meta Platforms, rely on its premium ducts to drive their AI platforms
Image source: Getty Images
These were some of the highlights from the 2026 fiscal first quarter ( April 27): Revenue increased 69% year over year, including a 73% increase in data center sales
Net income increased from $0. 60 last year to $0. 76 this year
It released two new AI nologies, Blackwell Ultra and Dynamo
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
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 that makes it stronger
Reaching new highs Nvidia stock had fallen earlier this year as fears tariffs and competition worried the market
It appears, for now at least, that those worries are unfounded, and smart investors scooped up s on the dip
It's still reasonably priced relative to its growth spects
Wall Street sees earnings per (EPS) for this year growing from $2. 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
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 holder wealth that it did for early investors, but it should keep rewarding patient investors over the long haul
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors
Jennifer Saibil has no position in any of the stocks mentioned
The Motley Fool has positions in and recommends Amazon, Meta Platforms, and Nvidia
The Motley Fool has a disclosure policy.
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