Foxconn's earnings release comes just a week after Microsoft announced that it expects to spend $80 billion on AI data center infrastructure in its FY 2025. This was huge news for investors, as it confirms that Silicon Valley's AI arms race is not winding down any time soon.

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.

Nvidia (NVDA) has solidified its position as a leader in the technology industry, especially within the semiconductor space. No other semiconductor company has experienced growth as explosive as Nvidia’s.

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.