Applied Materials Inc. (AMAT) stock fell nearly 1% in Wednesday premarket trading as semiconductor equipment stocks tracked weakness in technology shares. Nasdaq futures were down 0.20%, while S&P 500 futures were little changed, up 0.01%.

Applied Materials is also trading near an important technical level following a strong 12-month rally. That puts added focus on whether the stock can hold recent breakout levels.

Partners With KIOXIA On Next-Generation AI Memory Technology

Separately, Applied Materials and KIOXIA Corp. said Tuesday they will collaborate at Applied Materials’ EPIC Center in Silicon Valley to develop next-generation memory technologies for artificial intelligence applications.

The companies will work on advanced memory structures, multi-chip stacking, packaging and new materials engineering methods.

The goal is to improve memory density, performance and energy efficiency as AI systems demand faster, higher-capacity memory.

KIOXIA will join Applied Materials’ broader EPIC Center ecosystem, which includes chipmakers, designers, equipment suppliers and universities.

EPIC Center Expands R&D Network

Applied Materials said its EPIC Center will support faster development and commercialization of semiconductor technologies.

The company expects the facility to be operationally ready this year. Capital spending could eventually reach about $5 billion as customer projects begin.

Applied Materials said the partnership will also help move new memory and packaging technologies more quickly into high-volume manufacturing.

Technical Analysis

AMAT remains in a longer-term uptrend. The stock is about 19.8% above its 200-day simple moving average of $423.70.

However, the near-term picture is more mixed. Shares are about 11.4% above the 20-day SMA of $455.74 and 3.8% above the 50-day SMA of $489.11. The stock is also trading near its 100-day SMA of $508.33.

The 20-day SMA remains below the 50-day SMA, signaling some short-term weakness. However, the 50-day SMA remains above the 200-day SMA, supporting the longer-term bullish trend.

Momentum has also improved. The MACD is above its signal line, while the histogram remains positive. That suggests selling pressure has eased.

Resistance sits near $564. Support is around $426, close to the 200-day moving average.

Analyst Outlook

The stock carries a Buy consensus rating and an average price forecast of $675.91.

Morgan Stanley maintained an Equal-Weight rating and lowered its price forecast to $563 from $642 on Sept. 28. UBS maintained a Buy rating and raised its forecast to $695 on Sept. 1. Mizuho maintained an Outperform rating and lowered its forecast to $590 on Aug. 25.

MarketDash Edge Rankings

AMAT has a Momentum score of 95.71 and a Quality score of 96.12 on the MarketDash Edge scorecard.

Its Value score stands at 10.49, reflecting a premium valuation, while its Growth score is 48.42.

Overall, the scores point to strong momentum and quality, while valuation remains a potential constraint.

ETF Exposure

AMAT has a 4.44% weighting in the Invesco PHLX Semiconductor ETF (SOXQ), a 4.62% weighting in the Invesco Semiconductors ETF (PSI) and a 5.88% weighting in the Corgi Lithography & Semiconductor Photonics ETF (EUV).

Flows into or out of these ETFs can therefore contribute to trading activity in AMAT shares.

Price Action

Applied Materials shares were down 0.69% at $508.50 in Wednesday premarket trading, according to market data.