Oracle (ORCL)

Shares in Oracle were up by over 8% in pre-market trading as the software company announced cloud deals with Google (GOOG) and OpenAi.

"In Q4 alone, Oracle signed over 30 AI sales contracts totalling more than $12.5bn (£9.8bn), including one with OpenAi to train ChatGPT in Oracle Cloud," CEO Safra Catz said.

The company also said that it would bring its database to Google's cloud, with availability coming in November. Organisations will be able to deploy workloads in Google and Oracle cloud data centre regions without being subject to data-transfer charges.

"In Q3 and Q4, Oracle signed the largest sales contracts in our history, driven by enormous demand for training AI large language models in Oracle Cloud," Catz added.

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Despite this, fourth-quarter results in Larry Ellison's company fell short of Wall Street expectations.

Total revenue grew 3% to $14.29bn. Net income came in at $3.14bn, or $1.11 per share, down from $3.32bn or $1.19 per share in the year-ago quarter.

In the latest quarter, the company raked in $10.23bn in revenue from cloud services and license support, up 9% from a year before.

Oracle reported total revenue growth of 6% for fiscal 2024. For FY25, analysts expect 9% growth.

The company expects first-quarter revenue to grow between 5% and 7%, while analysts estimate a 7.6% rise.

Apple (AAPL)

Apple shares hit a new high during Tuesday's session, closing 7% higher but it was in the red during pre-market trading as the AI announcements continue to divide analysts.

In its worldwide developers conference, the iPhone maker got back on the AI race with the announcement of Apple Intelligence. It also said users will soon be able to tap into OpenAi's ChatGPT when using Siri.

At least 13 analysts raised their price targets on Apple’s shares after the developer event, and said the latest features could give sales a boost as the company prepares to announce a new line of iPhones in autumn.

"This was a historical day for Apple and Cook & Co, and it did not disappoint in our view," Wedbush analyst Daniel Ives told investors in a research note.

Ives, who kept his outperform rating and $275 price target, said “the entire tech landscape was laser focused on the highly anticipated AI strategy and further updates across both the hardware and software ecosystems that will drive the next growth cycle over the coming years.”

“Apple is demonstrating that it is invested in evolving its platform and devices to enable the next era of computing, interfaces and experiences,” Gartner analyst Tuong Nguyen said.