Premarket: Oracle Slides After Earnings, Chip Stocks Sink While Apple Jumps Over 3%

On September 11, premarket focus centered on Oracle's latest earnings release. All three major indices closed lower in the prior session, with heavy selling pressure on chip stocks — Nvidia shed over 2%, Intel tumbled more than 5%, while Apple bucked the trend with a gain above 3%, standing out as one of the few bright spots. Premarket futures pointed to a modestly lower open.

Oracle extended its slide in premarket trading following its earnings report, as intensifying cloud and AI infrastructure investments weighed on near-term free cash flow. The broader chip sector remained under pressure, with Intel leading the declines. Apple rose over 3% to pace heavyweight tech gainers. Meanwhile, Amazon's AI capex boost to $220 billion fueled heightened premarket attention on Micron Technology and Broadcom.

Oracle Earnings: Mixed Results, Premarket Weakness Exceeds 5%

Oracle (ORCL) closed the prior session down 5.38% at $152.94 and continued to slide premarket. The company reported OCI cloud infrastructure revenue of $7.4 billion, surging 121% year-over-year, while remaining performance obligations (RPO) rose by an additional $26 billion sequentially, driving full-year revenue guidance upward to at least $90 billion. However, Q1 capital expenditure reached $28 billion, free cash flow stood at -$5 billion, and gross margins declined simultaneously. Management offered no timeline for a return to positive free cash flow. Furthermore, nearly all new contracts were structured as prepaid or customer-supplied hardware models, raising market concerns about earnings quality.

Chip Stocks Slide Broadly, Intel Down Over 5%

The chip sector broadly declined in the prior session. Nvidia (NVDA) fell 2.26% to $218.36; Intel (INTC) dropped 5.57% to $100.32, marking the steepest decline among large-cap semiconductor stocks; Cipher Digital (CIFR) lost 5.68%. Oracle's massive capital expenditure prompted renewed scrutiny over the sustainability of AI chip demand, with some investors opting to reduce positions ahead of the CPI release. Additionally, mounting rate-hike expectations further pressured high-valuation tech names.

Apple Rises Over 3% Against Trend, Amazon Ramps Up AI Capex

Apple (AAPL) rallied 3.56% to $326.57 in the prior session, emerging as one of the few tech heavyweights to post a notable gain. Separately, Amazon (AMZN) CEO Andy Jassy announced that capital expenditure would be raised to $220 billion to meet surging artificial intelligence demand, signaling continued infrastructure investment expansion through 2028. This development drove heightened premarket interest in key AI suppliers such as Micron Technology (MU) and Broadcom (AVGO), with the market anticipating significant revenue growth for both companies in memory and networking solutions.

Elsewhere, Ford Motor (F) gained 3.20% to $13.88 in the prior session; UiPath (PATH) rose 2.21%; Plug Power (PLUG) fell 2.76%; Opendoor (OPEN) dropped 6.67%. Market attention now turns to the U.S. CPI data due this evening, which could shape the Federal Reserve's rate decision next week.