XLI - Not AI Or Magnificent 7: Short-Seller Jim Chanos Warns Investors Are Missing 'Absolute Insane' Valuations Of These Stocks | Benzinga
The 2023 market rally has been fueled by big tech companies, many with exposure to artificial intelligence. However, investor and short-seller Jim Chanos has warned of a different bubble brewing: “insane valuations” in some industrial stocks.
What Happened: On Wednesday, Chanos highlighted concerns about high valuations in low-growth industrial companies.
“While people focus on AI, the Mag 7, etc., I think they might be missing the absolute insane valuations that many no or low-growth industrials are now sporting,” he said.
He pointed to Eaton Corporation Plc (NYSE:ETN) trading at nearly 30 times its last twelve-month EBITDA and six times its revenue, despite minimal revenue growth ...