Key facts
- Nvidia reported first-quarter 2026 revenue of $81.62 billion, exceeding expectations.
- Nvidia's datacenter revenue reached $75.2 billion, a 92% year-over-year increase.
- Nvidia's market capitalization is $5.4 trillion, making it the world's most valuable company.
- Apple's stock fell after its earnings report, leading to Nvidia reclaiming the top valuation spot.
- Nvidia CEO Jensen Huang described the AI infrastructure expansion as the "largest infrastructure expansion in human history."
- Apple is experiencing memory shortages and has increased prices on some products.
Nvidia has reclaimed its position as the world's most valuable company, overtaking Apple following its latest earnings report. The chip giant reported first-quarter 2026 revenue of $81.62 billion, significantly exceeding Wall Street expectations and continuing its streak of strong growth driven by the AI boom.
Nvidia's CEO, Jensen Huang, described the current period as the "largest infrastructure expansion in human history" due to the rapid buildout of "AI factories." The company's datacenter business, a key driver of its success, saw a 92% year-over-year increase in revenue, reaching a record $75.2 billion. This performance underscores Nvidia's dominant role in providing essential chips and infrastructure for artificial intelligence.
The competition for the title of the world's most valuable company between Nvidia and Apple highlights contrasting strategies in the AI era. While Apple's revenue growth is largely driven by consistent iPhone sales, it has faced criticism for lagging in AI development. Conversely, Nvidia's valuation is fueled by its critical role in powering AI advancements, though this also exposes it to the inherent uncertainties of a rapidly evolving technology.
Apple's recent earnings report showed a 16% year-over-year increase in overall revenue, with iPhone revenue up 22%. However, the company is grappling with memory shortages, leading CEO Tim Cook to describe it as a "100-year-flood on memory pricing," which has resulted in price increases for some products and a subsequent drop in Apple's stock. Analysts suggest Apple may partner with other companies for AI models, leveraging its vast user base.
Nvidia also announced plans for a new AI system, the Vera Rubin platform, expected in the second half of 2026, which Huang anticipates will lead to supply constraints. The company is also expanding its global footprint with a new research hub in Singapore. Discussions around Nvidia's potential expansion into China continue, with the U.S. government having previously allowed certain chip sales under specific conditions.