Cerebras Systems (NASDAQ:CBRS) is quickly turning into one of the hottest IPO stories of the year, and the frenzy around the deal may be revealing something bigger about Wall Street's AI obsession.

The AI chip startup reportedly raised its preliminary IPO pricing range to $150 to $160 per share from $115 to $125 after investor demand surged.

Reuters reported the offering was nearly 20 times oversubscribed, signaling unusually aggressive appetite for the deal. At the revised range, Cerebras could raise roughly $4.5 billion.

But investors may not simply be buying another semiconductor company.

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