Arm Holdings (NASDAQ: ARM) went public last week and it may be this year's hottest initial public offering (IPO). The company generates revenue from licensing and royalty deals that it arranges with customers who want to use its designs when making semiconductor chips.

And with chips soaring in demand and tech being a great place to invest these days, the timing couldn't have been better for the stock -- it can benefit from an uptick in demand due to the growing popularity of artificial intelligence (AI).

Investors who missed the boat on Nvidia's (NASDAQ: NVDA) mammoth 200% gains this year might be wondering if Arm is a good alternative right now. Could it be the next big AI stock, or should investors hold off on investing in this hyped-up IPO?

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Source Fool.com