Shares of Arm Holdings (NASDAQ: ARM) stumbling out of the gate on Monday and never recovered, falling as much as 6.9%. As of 2:16 p.m. ET, the stock was still down 4.9%.

The catalyst that sent the chipmaker and artificial intelligence (AI) specialist lower was the dour outlook of one Wall Street analyst.

Analysts at downgraded Arm to reduce (hold) while simultaneously increasing the firm's price target to $105, up from $100. If that logic strikes you contradictory, you're not alone. The analysts appear to have mixed feelings about Arm's future potential, which accounts for the disparity.

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Source Fool.com