There’s still value for Nvidia despite DeepSeek threat, says strategist Jay Woods

Published Tue, Jan 28 20254:49 PM EST

There's more gains ahead for shares of Nvidia despite the emergence of AI startup DeepSeek, according to Jay Woods, chief global strategist of Freedom Capital Markets. Woods joined CNBC's " Power Lunch " on Tuesday to share his take on the AI chipmaker. Here's what he had to say during the segment's "Three-Stock Lunch." Nvidia Nvidia shares plunged 17% on Monday after Chinese startup DeepSeek raised concerns over the amount of money big tech has been investing in AI models and data centers. The stock shed $600 billion in market capitalization, marking the biggest one-day loss for a U.S. company. But the stock made a comeback on Tuesday, ending the day with a 9% gain. Shares of Nvidia are still down 4% on the month but have risen 111% in the last twelve months. Woods said that the setup for traders was optimistic. "Long term, I still think it's great. This story out of China with DeepSeek — we shot first, we're asking questions now," the strategist said. "I have more questions than answers. So I think this is a buying opportunity." General Motors Despite posting a fourth-quarter earnings and revenue beat , shares of General Motors ended Tuesday with a 9% decline. Investors sent the stock lower as concerns grew around the automaker's preparation for new changes under the second Trump administration, such as the impact of potential tariffs and policy changes on vehicle production and electric vehicle sales. The stock's Tuesday decline now provides a good entry point for investors, according to Woods. "I think it's an opportunity to buy the stock. The quarter was pretty solid. People were concerned about 25% tariffs that weren't mentioned in their guidance" he said. "You buy here, you get out and embrace the 200-day moving average." Shares of General Motors are currently on pace to end the month 6% lower, although the stock is still up 42% in the last twelve months. RTX Shares of RTX , formerly known as Raytheon Technologies, ended Tuesday nearly 3% higher on the back of better-than-expected fourth-quarter results. The aerospace and defense firm posted adjusted earnings of $1.54 per share on revenue of $21.62 billion, exceeding the $1.38 per share on $20.54 billion in revenue analysts had expected. Woods said that RTX's rosy outlook makes the stock look attractive. The strategist added that the sector is strong, and RTX is currently outperforming competitor Lockheed Martin . "Trump wants this American Iron Dome, and guess who helped with the Israeli Iron Dome? Raytheon. So if this does come to pass, expect Raytheon to be okay," Woods said. "The headwind there is DOGE. But technically, it's breaking out. It has solid price action. I think it's a great long-term buy-and-hold." Shares of RTX are now up 11% in January and up 42% in the last 12 months.