It's no secret that Arm Holdings (NASDAQ: ARM) stock benefitted from the artificial intelligence (AI) boom. Since its IPO at $51 per share in September, the stock price has nearly tripled, with shares trading for $146 on Monday. One analyst suggests the price spike put Arm's valuation into rarified territory and pullback is coming.

New Street Research analyst Pierre Ferragu downgraded Arm to neutral (hold) from buy while maintaining a one-year price target of $110. That represents a potential downside for investors of 26% compared to the stock's closing price when the price was reported.

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Source Fool.com