Bets rebound that Nvidia is the world's largest company at October's end

Traders have swung back toward Nvidia staying the world's most valuable company at the end of October, ahead of Apple. They now see that as likely, after a sharp rebound that began Sunday and continued into Monday morning. The reason for the rise is not clear.

The move reverses much of last week's slide. Bets on Nvidia finishing on top were close to all but certain on Wednesday, after the chipmaker rose 2.5% following a stronger-than-expected profit report from SpaceX, AP reported. They fell sharply on Thursday, when renewed worries about AI spending and borrowing costs hit chip stocks and Nvidia dropped 4.4%, according to AP. They kept sliding Friday and bottomed out Saturday, when the contest looked close to a toss-up.

The race is tight in the real world. Apple climbed to record highs in mid-October amid optimism about its foldable iPhone, while Nvidia had fallen nearly 11% from its October 6 peak, Cinco Días reported. At Friday's close, market-cap trackers put Nvidia at about $5.09 trillion and Apple at roughly $5.07 trillion. Apple briefly passed Nvidia during Friday's session before slipping back.

Traders' view of Apple has weakened as Nvidia's has strengthened. Apple's chances of finishing October on top are now seen as unlikely, down from a higher level a week ago. Bets that Nvidia is still the largest company at the end of December have also risen, from a toss-up to likely.

The gap between the two companies is small enough that a single day of trading could flip the ranking. October 31 falls on a Saturday, so there is no market close that day. Friday, October 30 is the last regular trading session before then.

Several events could move technology stocks before then. The Federal Reserve announces a rate decision on Wednesday, October 28. Microsoft and Alphabet report earnings after the close that day, and Amazon follows after the close on Thursday, October 29. Investors will be looking for comments on cloud and AI spending, which could shift how the largest tech companies are valued relative to one another.