Shares of Micron Technology (MU) plummeted 5.04% in intraday trading on Thursday, as disappointing results from Japanese memory chip maker Kioxia triggered a broader selloff in the sector. The decline comes despite recent positive analyst sentiment towards Micron, highlighting the volatile nature of the semiconductor industry.

Kioxia, a major player in the flash memory market, reported a significant drop in both sales and profits for the six months ended September 30. The company's operating profit tumbled 55%, while revenue fell 16% compared to the same period last year. This poor performance has raised concerns about the overall health of the memory chip market, leading investors to reassess their positions in companies like Micron.

The selloff was not limited to Micron, as other memory chip stocks also faced downward pressure. Western Digital and Sandisk saw their shares drop by 2.8% and 3.7% respectively in premarket trading. This sector-wide decline suggests that investors are worried about potential weaknesses in the memory chip market that could affect multiple companies.

Interestingly, the sharp drop in Micron's stock price comes just a day after Morgan Stanley named the company as its new top pick, raising its price target to $325 from $220. The investment bank cited expectations of continued benefits from industrywide shortages and potential price increases. This contrasting sentiment highlights the rapidly changing dynamics in the semiconductor industry and the challenges investors face in navigating this volatile sector.