Micron Technology (MU) stock plummeted 5.01% to $97.71 in intraday trading on Thursday, despite the company's strong growth prospects and a favorable memory sales environment.

According to an analyst report by MarketWatch, the memory specialist has been reporting outstanding growth in its revenue and earnings, driven by robust demand for high-bandwidth memory (HBM) used in AI applications and an improvement in smartphone and personal computer sales.

The report highlights that Micron's attractive valuation, with the stock trading at just 14 times forward earnings, and its earnings growth potential suggest the stock could head higher in the next year. Analysts project Micron's earnings to increase by a whopping 430% in the current fiscal year, followed by a 62% jump in the next one.

However, despite the positive outlook, Micron's stock experienced a sharp decline on Thursday, likely due to profit-taking by investors after the stock's significant rally earlier in the year. The memory market's growth and Micron's strong performance have been well-anticipated by the market, and the stock's recent gains may have prompted some investors to lock in profits.