Nvidia Now World’s Most Valuable Company Despite China Setbacks

Nvidia’s latest earnings report sparked a 5% jump in after-hours trading, pushing the chipmaker’s stock within 8% of its January peak. With fiscal Q1 2026 revenue climbing 69% to $44.1 billion and earnings per share reaching $0.96, Nvidia beat Wall Street expectations even as export restrictions to China shaved $8 billion off potential sales. 

The company’s data center division, now its core engine, brought in $39.1 billion, up by a huge 73% year-on-year but slower than the previous quarter’s 93% surge. Despite this change, investors took comfort in strong guidance for the current quarter: Nvidia expects $45 billion in revenue, give or take 2%, underpinned by global AI demand.

The China drag came from new US export rules that forced Nvidia to write down $4.5 billion in inventory of H20 GPUs. Gross margin dipped to 61% as a result but would have been 71.3% without the write-down. For Q2, the company forecasts a non-GAAP gross margin of 72%, just short of the 73.5% recorded last quarter. 

What Does This Mean for Me?

Analysts say Nvidia’s positioning at the centre of AI infrastructure remains its strongest card, with demand from hyperscalers and sovereign tech investments driving growth. Nvidia's advanced Blackwell AI chips are now in mass production, which is expected to further accelerate adoption.

Even as the $50 billion China market fades, Nvidia is eyeing new ground. Its AI factory partnerships in Saudi Arabia and alignment with US-led AI infrastructure pushes signal a strategic shift. Market cap rankings have followed suit—Nvidia now tops Microsoft and Apple, claiming the title of the world’s most valuable company.