Initial public offerings (IPOs) can sometimes be alluring to investors because of the potential to buy a stock in its early growth stages, before it may take off in value. However, it doesn't always end up that way. If a stock is priced too high out of the gate, for instance, that can set it up for a decline, even if it has strong growth prospects.

A couple of popular stocks that recently went public are Arm Holdings (NASDAQ: ARM) and Instacart (NASDAQ: CART). Neither has been soaring out of the gate, but both possess intriguing growth opportunities. Which one of these stocks is the better buy today?

What makes Arm appealing is the growth in the semiconductor market. As everything gets connected to the cloud, the demand for next-gen technology and chips rises. And Arm is a leading company in chip design. Companies pay for the license to use its designs, which, in turn, leads to stable and growing revenue for Arm's business. Its total share of the semiconductor design market is nearly 50%.

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Source Fool.com