Micron Technology (MU) shares took a sharp downturn on Thursday, plummeting 5.03% in intraday trading, in a surprising reversal that caught investors off guard. This decline comes amidst a broader rally in the semiconductor sector, fueled by Nvidia's strong revenue forecast, making Micron's performance particularly noteworthy.

Earlier in the day, Micron's stock had been up 3.3% in pre-market trading, riding the wave of optimism that swept through chip stocks following Nvidia's stellar earnings report. However, by mid-morning, Micron's shares had dramatically reversed course, with the stock last reported down 4.3% before extending its losses further.

The stark contrast between Micron's performance and its peers is puzzling analysts. While companies like AMD, Arm Holdings, and Broadcom saw significant gains, Micron found itself among the bottom performers in the Nasdaq 100. This divergence suggests that investors may be reassessing Micron's position within the AI-driven chip boom or that company-specific factors are at play.

Despite the day's setback, it's worth noting that UBS had raised its target price for Micron from $245 to $275, indicating continued confidence in the company's long-term prospects. As the trading session progresses, market watchers will be keenly observing whether Micron can recover from this unexpected downturn or if this marks the beginning of a more significant trend for the memory chip manufacturer.