Kynikos Associates founder and renowned short-seller Jim Chanos is shedding light on the companies he believes are ripe for shorting in the current market landscape. In a recent interview at the 2025 Forbes Iconoclast Summit, Chanos highlighted companies that he predicts will face challenges due to advancements in artificial intelligence (AI), with US tech giant International Business Machines Corporation (IBM) being at the top of his list.
Chanos expressed his concerns about companies that may struggle to adapt to the evolving AI landscape, drawing parallels to the early days of the Dot-com boom. He emphasized that as AI technology continues to improve, certain businesses with outdated models will likely see their value diminish significantly. One such company that Chanos mentioned is IBM, which has experienced a resurgence in its stock price over the past year despite facing stagnant growth and trading at all-time high valuations.
At the time of writing, IBM is trading at $268, representing a 60% increase in the last 12 months. Another company that Chanos has identified as a potential short opportunity is Carvana (CVNA), a used car retailer that has seen a staggering 7,961% surge in its stock price over the past 30 months.
Chanos pointed out that Carvana remains a misunderstood story in the market, with key indicators such as decreasing short interest and significant insider selling raising red flags. Despite trading at $341 currently, Chanos believes that the company’s fundamentals may not support its current valuation, making it a target for short sellers.
In a market where positioning is crucial for short trades, Chanos’ insights offer valuable guidance for investors looking to capitalize on potential downturns in specific companies. By leveraging his expertise in identifying companies vulnerable to disruptive technologies like AI, investors can make informed decisions to navigate the ever-changing market landscape.
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