The Nasdaq-100 tracks the 100 largest non-financial companies on the Nasdaq Stock Exchange. The index is heavily weighted toward the technology sector, and it includes some of the most innovative companies in the world.

The Nasdaq-100 returned 18% during the first half of 2024 due to excitement about artificial intelligence (AI). Investors showed a particular preference for two AI semiconductor stocks. Nvidia (NASDAQ: NVDA) and Arm Holdings (NASDAQ: ARM) led the Nasdaq-100 higher, with shares soaring 150% and 122%, respectively, during the first half.

Wall Street is less optimistic about their prospects in the second half, especially where Arm is concerned. Nvidia carries a median price target of $128 per share, which implies 3% upside from its current price of $124 per share. But Arm carries a median price target of $120 per share, implying 28% downside from its current price of $167 per share.

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Source Fool.com