The best-performing stocks in the Nasdaq-100 during the first half of 2024 were Nvidia and Arm Holdings. However, Wall Street predicts a significant decline for Arm in the coming months. The Nasdaq-100 tracks the largest non-financial companies on the Nasdaq Stock Exchange, with a focus on the technology sector. The index returned 18% during the first half of 2024, fueled by enthusiasm for artificial intelligence (AI). Investors showed particular interest in Nvidia and Arm Holdings, which saw their shares rise by 150% and 122%, respectively.

However, analysts are less optimistic about Arm's prospects, with a median price target suggesting a 28% downside. On the other hand, Nvidia, a leader in data center GPUs and AI processors, is expected to continue growing its earnings per share (EPS) and has a more favorable valuation compared to its earnings growth. While Arm is a market leader in smartphone and mobile processors, its current valuation is considered expensive, and Wall Street expects slower growth for the company in the future. The text suggests that investors may want to avoid Arm until it trades at a more reasonable valuation.