By by Jack Denton and Anita Hamilton

Micron stock was falling on Thursday alongside much of the chip and AI space. Not even Nvidia CEO Jensen Huang's comment that the demand for memory is unlikely to ease could stop the slide.

Micron stock was down 4% Thursday, wiping out gains from a 2% bump on Wednesday as the market continues to whipsaw in its sentiment over the sustainability of AI spending to memory specialists like Micron.

Other memory stocks were hurting as well, including American depositary receipts for Micron's Korean rival SK Hynix, which fell 6%. Meanwhile, Sandisk and Western Digital were both down around 7%.

Huang told CNBC that a surplus of memory is unlikely by 2029. "One of the things that's really great about memory is that you can always use more of it," he said.

Huang is onto something. Micron's decline may be an entrance opportunity for the stock, which an analyst at D.A. Davidson sees more than tripling in price from this point.

But short-term pain is nothing when long-term gain is in the cards, according to Gil Luria, a managing director at D.A. Davidson and head of the Wall Street firm's technology research division.

"We see Micron as having a leadership position in memory technology, with far wider moats than are implied by the current valuation," Luria said in a note on Wednesday, praising the company after attending a webcast event focused on upcoming innovations and Micron's place in the growing memory space.

D.A. Davidson reiterated its Buy rating on Micron stock and its sky-high price target of $3,000, implying the stock could more than triple from its closing level near $914 on Wednesday.

"Memory is integral to the AI product," Luria wrote. "We think one of the core takeaways from the webcast is that for AI, greater memory content and memory bandwidth capability make the system operate at a higher level."

D.A. Davidson outlined how Micron has a compelling case for market-leading innovation and dominance in all three of the key memory chip technologies: DRAM, NAND, and HBM.

"We believe that as investors internalize Micron's technology leadership and subsequent wide moat, they will become more willing to pay a market multiple for Micron," Luria said.

You wouldn't believe that optimism based on how the stock was looking early Thursday. But perhaps it will just take the market a minute to come around.