Arm shares fell on Tuesday on the New York Stock Exchange, weighed down by a downgrade from analysts at New Street Research, who said they were concerned about the valuation level reached by the chipmaker.

Shortly before 11:00 a.m., shares in the British group, which designs energy-efficient processors, dropped 4.5%, while the Nasdaq gained 0.2% at the same time.

In a research note, analysts at the independent research firm point out that the semiconductor specialist's share price has almost doubled since its last earnings release.

In their view, the stock now incorporates prospects for royalty payments and market share gains that will be difficult to achieve, leading them to downgrade their opinion to 'neutral'.

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