What happened

Shares of NVIDIA Corporation (NASDAQ:NVDA) jumped 38.4% in the month of May, according to data provided by S&P Global Market Intelligence, then continued to climb to new heights in June after the graphics chip specialist announced stellar first-quarter results. 

So what

To be sure, shares of NVIDIA initially popped almost 18% on May 10, 2017 alone, the first trading day after NVIDIA revealed that first-quarter 2017 revenue increased 48% year over year to $1.94 billion. On the bottom line, adjusted net income more than doubled to $533 million, and adjusted earnings per diluted share increased a stellar 85% to $0.85.

By comparison, analysts were modeling lower revenue of $1.91 billion and adjusted earnings of only $0.67 per share. 

NVIDIA headquarters building

IMAGE SOURCE: NVIDIA CORPORATION.

"The AI revolution is moving fast and continuing to accelerate," elaborated NVIDIA founder and CEO Jensen Huang. "NVIDIA's GPU deep learning platform is the instrument of choice for researchers, internet giants and start-ups as they invent the future."

Now what

Of course, this isn't the first time Wall Street has badly underestimated NVIDIA. Recall that shares also skyrocketed late last year, when NVIDIA's big investments in multiple high-potential market opportunities finally began to yield fruit in the form of accelerated revenue growth. And even with NVIDIA's stock price having more than tripled over the past year alone, shares still trade at "just" 43.8 times this year's expected earnings -- an acceptable premium relative to NVIDIA's superior top- and bottom-line growth. If NVIDIA can truly sustain this momentum as its GPU technology continues to become more pervasive, I think the stock has plenty of room to rise from here.

Steve Symington owns shares of Nvidia. The Motley Fool owns shares of and recommends Nvidia. The Motley Fool has a disclosure policy.