Welcome to See King Alpha's Wall Street breakfast, where we cover the top news for investors every morning.

Good morning. Today is Thursday, August 1st, I'm Julie Morgan.

Applied materials has reportedly been turned down.

Meta platforms is on our list of the biggest movers of the day pre-market,

and Crowd Strike is facing lawsuits.

Applied materials won't receive funding under the Chips Act for a research and development

center.

People familiar with the matter told Bloomberg that Commerce Department officials concluded that the project did not qualify.

The biggest U.S. Chip equipment maker hoped to receive the grant for the $4 billion project in Sunny Vale, California,

which would speed up the development of semiconductor technology by several years.

It had planned to complete the project by early 2026.

Grant rejections for the CHIPS Act are not uncommon with government officials

warning applicants of potential rejection due to limited resources, but the rejection of applied materials

stands out as its project closely aligns with the Biden administration's aim of bolstering

the U.S. chip industry. The sources noted that the the direct subsidies from the CHIPS Act.

It's important to note that there is a separate $11 billion CHIPS Act funds specifically

for R&D with the first awards expected this fall.

Applied Materials and the Commerce Department declined to comment on the report.

Meta platforms in its second quarter earnings beat expectations on top and bottom lines and raise guidance for capital

spending as it continued its heavy investment into artificial intelligence.

The company boosted its 2024 forecast for capital expenditures in its first quarter earnings three months back,

and it continued to bump those expectations in Wednesday's second quarter results, guiding to a year end total of $37 to $40 billion and setting the bar at significant growth in 2025.

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