If investing were as simple as buying stocks with the best growth potential, everyone could be Warren Buffett. But alas, that's just not the case -- the price you pay for an investment matters. Shares of the best company bought at the wrong price can make for a terrible investment, even if that company does well in the long run.

Graphics chip company Nvidia (NASDAQ: NVDA) is on the ground floor of the AI revolution. The company's powerful data center graphics chips churn through AI training workloads, and they're in high demand as a result. Nvidia blew away expectations last time it reported quarterly results by providing an outlook driven by incredible demand for its AI chips.

You could argue that Nvidia's AI growth story isn't quite as ironclad as it seems by talking about the competition. is set to launch its own powerful AI chip, along with a new open software platform for GPU compute meant to provide an alternative to Nvidia's ecosystem. Intel already sells capable AI chips, the result of its acquisition of Habana Labs. And big tech companies like Alphabet are multiple generations into their own custom AI chip development efforts.

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Source Fool.com