How do you feel about children skipping grades?

My daughter just aced her End-of-Year tests for first grade and the school year has hardly even started.

I'd like to keep her academically challenged, so she doesn't become bored and start acting out, but I also worried about emotional challenges and social development when it comes to being thrown into a pond full of bigger fish. (That was my fishing reference.)

Has anyone here skipped, or had children skip, or just wishes to opine on the matter?