The present work introduces a laser-induced cavitation bubble technique for forming an axisymmetric structure (i.e., microgroove) and the dynamics of a cavitation bubble from initial expansion to the collapse stages that were also simulated. Furthermore, the shock wave signals and dynamic properties of the cavitation bubble were recorded using a hydrophone and a high-speed camera. The experiments on microgrooves formed by laser-induced cavitation bubble stamping were carried out, and the effects of laser energy, the initial position of the bubble, and the number of impacts on the microformability of aluminum sheets are discussed. The depth of the microgroove was investigated using experiments, and it was found that the process can serve as a rapid technique for impressing microfeatures on thin-sheet metals. The experimental results showed that as the initial position of the bubble increased, the deformation depth decreased. As the laser energy and number of impacts increased, the deformation depth increased. The results of the response surface experiments showed that a laser energy of 27 mJ, 3 impacts, and a bubble position of 3 mm were optimal for the process. By using the optimal parameters, flat and smooth microgrooves with a forming depth of 102.54 µm were successfully fabricated. Furthermore, the maximum thickness thinning of the microgroove section occurred at the entrance areas, and this area had the greatest hardness. This also indicated that the greatest amount of plastic deformation of the material and grain refinement occurred in this area. On the other hand, the aluminum foil did not undergo oxidation during the plastic deformation process. These results demonstrated that laser-induced bubble stamping is an advanced micromachining method with promising applications.