As some of you may recall, Nvidia's Q1 FY2026 numbers showed a very good quarter. Revenue for the corporation came to $44.1 billion, up 12% from the previous quarter and 69% from the same period last year. With sales estimates predicted to reach $45 billion, Nvidia has predicted an even better performance in Q2 FY2026. But before that actually occurs, the company has achieved a significant milestone.
According to CNBC, Nvidia's stock price increased by more than 2% today, making it the first business in the world to reach a $4 trillion market capitalization. Reaching this milestone has allowed the firm to overtake both Apple and Microsoft, which is a significant accomplishment given that both companies reached the $3 trillion market valuation before Nvidia. Alphabet, the parent firm of Google, is comfortably sitting at $2.1 trillion, Apple is at $3.1 trillion, Microsoft is at $3.7 trillion, and Meta is maintaining steady at $1.8 trillion.
Strong demand for Nvidia's specialized and general-purpose technology in this era of generative AI has increased the company's market capitalization. With ChatGPT's explosive rise in popularity in late 2022, the chipmaker truly found its footing. Additionally, a lot of businesses that provide public cloud platforms to their clients, such as Microsoft, depend on Nvidia's technology for a variety of workloads.
However, Nvidia has also seen its share of difficulties. It must need new licenses to export H20 products to China due to a recent U.S. government limitation, which is anticipated to cost the company $8 billion in missed revenue. Notably, this loss is already factored into Nvidia's $45 billion revenue estimate for the current quarter, meaning that its revenue would have exceeded $50 billion in any other scenario. It would be intriguing to observe whether Nvidia can be overtaken by other tech companies or if the chipmaker will continue to elude them.