Applied Materials Inc. (NASDAQ:AMAT) shares were down in Wednesday’s premarket session, only to recover later.This volatility follows the company’s recent announcement of expanding its manufacturing operations in Singapore to support the growing demand for AI-driven semiconductor production.The move is part of a broader strategy to enhance its capabilities in a rapidly evolving industry, as highlighted in a recent report about the expansion to support AI chip demand.Applied Materials Expands Singapore Manufacturing For AI Chip DemandApplied Materials has invested $500 million to expand its manufacturing and R&D operations in Singapore, doubling its cleanroom capacity.This facility is designed to meet rising demand from chipmakers responding to the AI boom. It is expected to create approximately 1,000 new jobs in the region.AMAT Technical Outlook: Key Levels And MomentumThe stock’s current price of $496.00 is significantly above its key moving averages, with the 20-day simple moving average (SMA) at $452.49, indicating a strong bullish trend.The moving average convergence divergence (MACD) is above its signal line, suggesting that downside pressure is easing and that momentum is improving despite the current price dip.