Nvidia (NASDAQ: NVDA) is the most important hardware company in the artificial intelligence (AI) revolution today. Its high-end graphics processing units (GPUs) provide performance advantages that no other player in the space comes close to matching.

Investors were not impressed by Nvidia's quarterly performance and outlook even though it handily beat Wall Street's expectations thanks to the booming demand for its artificial intelligence (AI) chips.

The cyclical nature of chip stocks could affect Nvidia stock in the near term. Unfortunately for investors who want to buy Nvidia shares, its success has made determining whether it is a buy now a more difficult problem.