Why Super Micro Computer, Applied Materials, and C3.ai Rallied Today

Shares of artificial intelligence (AI)-related stocks Super Micro Computer (NASDAQ: SMCI), Applied Materials (NASDAQ: AMAT), and C3.ai (NYSE: AI) were rallying on Friday, up 6.1%, 6.9%, and 6.2%, respectively, in Friday trading.

None of these stocks had company-specific news to speak of today. However, in general, artificial intelligence stocks continued to power higher on solid news flow for AI prospects, which only seems to be getting better and better.

Today’s news included a bullish announcement from the Biden Administration on CHIPS and Science Act subsidies and a breaking news story that OpenAI founder Sam Altman is looking to raise a stunning amount of money for an AI-related chip venture.

$5 billion for chip research, trillions for OpenAI?

On Friday, the Biden Administration announced a $5 billion investment in a public-private research and development consortium for chipmakers. The aim of the consortium, funded by the 2022 bipartisan CHIPS Act, is to accelerate innovation and U.S. workforce development in chipmaking, with an onus on AI chips. In the announcement, Commerce Secretary Gina Raimondo said:

While it’s hard to determine the direct benefit to any one company, this could be a boon for Applied Materials, which is one of the world’s largest semiconductor equipment providers and the most diversified. Last year, Applied announced a $4 billion multiyear investment in its own R&D research platform, EPIC.

While it’s unclear whether Applied will be directly involved in the government consortium, it’s possible Applied could receive subsidies for some of that spending. It’s also likely that new government-funded research and education centers will buy more Applied Materials equipment for…