Shares of top semiconductor patent company and recent IPO stock Arm Holdings (NASDAQ: ARM) have gone wild during the most recent bout of AI hype. After the company released its latest quarterly earnings update on Feb. 7, the stock price nearly doubled in value in just a few days.

Management was liberal with its use of the term AI on the quarterly call, and perhaps for good reason. Arm's claim to fame is lending a big helping hand to Apple with designing cutting-edge mobile chips for the iPhone and the M-series chips for MacBooks. Lots of other companies would like similar-performing chips powering their own hardware.

Arm could be just getting started as a new bull market starts to heat up. But does that make the stock a buy?

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Source Fool.com