Chipmaker Nvidia's (NASDAQ: NVDA) shares soared 25% in extended trading May 24 on the back of blowout numbers for the company's fiscal 2024 first quarter, ended April 30. Nvidia's revenue and earnings have handily beaten consensus estimates, driven by solid demand for artificial intelligence (AI) chips.

The data center segment is back in solid growth mode and well-positioned to benefit from the rapid uptake of generative AI capabilities by enterprises across industries and functions. Gaming and automotive segments also reported solid numbers in the first quarter.

Nvidia's shares are up about 166% so far this year thanks to a high-quality, diversified business with a huge addressable market and competent management team. But the stock's surge also has some investors wondering if the market is showing excessive exuberance.

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Source Fool.com