Tag: Gartner

Bubble fears ease but investors still waiting for AI to live up to its promise

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Fears about the artificial intelligence boom turning into an overblown bubble have diminished for now, thanks to a stellar earnings report from Nvidia that illustrated why its indispensable chips transformed it into the world’s most valuable company.

But that doesn’t mean the specter of an AI bubble won’t return in the months and years ahead as Big Tech gears up to spend trillions of dollars more on a technology the industry’s leaders believe will determine the winners and losers during the next wave of innovation.

For now, at least, Nvidia has eased worries that the AI craze propelling the stock market and much of the economy for the past year is on the verge of a massive collapse.

If anything, Nvidia’s quarterly report indicated that AI spending is picking up even more momentum. The highlights, released late Wednesday, included quarterly revenue of $57 billion, a 62% increase from the same time last year. That sales growth was an acceleration from the 56% increase in year-over-year revenue from the May-July quarter.

What’s more, Nvidia forecast revenue of $65 billion for the current quarter covering November-January, which would be a 65% year-over-year increase.

Given Nvidia’s forecasts, “it is very hard to see how this stock does not keep moving higher from here,” according to analysts at UBS led by Timothy Arcuri. The UBS analyst also said the “AI infrastructure tide is still rising so fast that all boats will be lifted.”

Nvidia’s numbers are viewed through a window that extends far beyond the Santa Clara, California, company’s headquarters because its products are needed by a wide range of companies — including Big Tech peers like Microsoft, Amazon, Alphabet and Meta Platforms — to build data centers that are becoming known as AI factories.

“AI spending isn’t just holding up, it’s accelerating. That’s exactly what the market needed to see,” said Jake Behan, head of capital markets for investment firm Direxion.

The numbers initially lifted Nvidia’s stock price by as much as 5% in Thursday’s trading, while other tech stocks tied to the AI spending frenzy also got a boost. But Nvidia’s shares and other tech stocks reversed course later in the session as investors found other issues besides AI, such as the government’s latest jobs report and the future direction of interest rates.

Even with a 3% drop in its stock price amid the broader market decline, Nvidia remains valued at $4.4 trillion, more than 10 times its valuation three years ago when OpenAI released its ChatGPT chatbot, triggering the biggest technological shift since Apple released the iPhone in 2007.

Nvidia’s rapid rise has turned its CEO Jensen Huang into the chief evangelist for the AI revolution and he sought to use his bully pulpit during a late Wednesday conference call with industry analysts to make a case that the spending to make technology with humanlike intelligence is just beginning.

“There’s been a lot of talk about an AI bubble. From our vantage point, we see something very different,” Huang insisted while celebrating “depth and breadth” of Nvidia’s growth.

Huang is hardly a lone voice in the wilderness. A recent report from Gartner Inc. estimates that worldwide spending on AI will rise to more than $2 trillion next year, a 37% increase from the nearly $1.5 trillion that the research firm expects to be spent this year.

But it remains to be seen if all that money pouring into AI will actually produce all the profits and productivity that proponents have been promising. That leaves the question unanswered if all the real spending that’s happening will be worth it.

The most recent survey of global fund managers by Bank of America showed a record percentage of investors saying companies are “overinvesting.”

Big Tech is already so profitable that many of the most successful finance their spending sprees with their ongoing stream of revenue and cash hoards in their bank accounts. But some companies, such as Meta Platforms and Oracle, are relying more heavily on debt to fund their AI ambitions — a strategy that has raised enough alarms among investors that their stock prices have plunged more dramatically than their peers in recent weeks.

Both Meta and Oracle have suffered more than 20% declines in their stock prices since late October.

But other Big Tech powerhouses leading the way in AI remain just behind Nvidia and iPhone maker Apple in the rankings of the most valuable companies. Alphabet, Microsoft and Amazon boast market values currently ranging from $2.3 trillion to $3.6 trillion.

“It is true that valuations are high and that there is some froth in the market, however, the spending on AI is real,” said Chris Zaccarelli, chief investment officer for money manager Northlight Asset Management. “Whether or not the spending turns out to be overdone won’t be known for many years.”

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AP Business Writer Stan Choe in New York contributed to this story.

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November 21, 2025
Career experts say asking for a raise isn’t off the table in a tough job market

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NEW YORK (AP) — With the U.S. experiencing a significant hiring slowdown, it’s a daunting time to be looking for a job. Many workers are staying put instead of changing jobs to secure better pay. Artificial intelligence tools increasingly screen the resumes of applicants. Now may seem like an inappropriate time to request a raise.

But sticking around doesn’t mean wages and salaries have to stagnate. Career experts say it’s not wrong, even in a shaky economy, to ask to be paid what you’re worth. Raises aren’t even necessarily off the table at organizations that are downsizing, according to some experts.

“A lot of people think if their company has done layoffs, the likelihood of getting a raise is pretty low,” said Jamie Kohn, a senior director in the human resources practice at business research and advisory firm Gartner. “And that might be true, but the the other way to think about it is that this company has already decided to reinvest in you by keeping you on.”

This article is part of AP’s Be Well coverage, focusing on wellness, fitness, diet and mental health. Read more Be Well.

When should you ask?

If you’ve taken on greater responsibilities at work and have received strong performance reviews, or if you’ve learned you’re paid substantially less than colleagues or competitors with similar levels of experience, then it may be the right time to ask for a pay adjustment.

“They know that you’re taking on more work, especially if you’ve had layoffs on your team,” Kohn continued. “At that point, it is very hard for them to lose an employee that you know they now are relying on much more.”

Another signal that it’s time to ask for an adjustment is if you’re working a second job to make ends meet or your current financial situation is causing angst that impacts job performance, said Rodney Williams, co-founder of SoLo Funds, a community finance platform.

“There’s nothing wrong with saying, ’Hey, I need to raise my financial position. I’m willing to do more,” Williams said. “I’m willing to show up earlier, I’m willing to leave later, I’m willing to help out, maybe, and do other things here.”

Some people view asking for more compensation as less risky than switching to a new job. “There is a sense of not wanting to be ‘last in, first out’ in a potential layoff situation,” said Kohn.

Know your worth

Before starting the compensation conversation, do some research on current salaries. You can find out what people with comparable experience are making in your industry by searching on websites such as Glassdoor, where people self-report salaries, or ZipRecruiter, which gathers pay data from job postings and other sources.

Three years ago, a lot of people asked for 20% pay increases because of price inflation and high employee turnover coming out of the coronavirus pandemic, Kohn said. Companies no longer are considering such big bumps.

“Right now, I think you could say that you are worth 10% more, but you’re unlikely to get a 10% pay increase if you ask for it,” she said.

Your success also depends on your recent performance reviews. “If you’ve been given additional responsibilities, if you are operating at a level that would be a promotion, those might be situations where asking for a higher amount might be worth it,” Kohn said.

Compare notes with colleagues

Many people view the topic as taboo, but telling coworkers what you make and asking if they earn more may prove instructive. Trusted coworkers with similar roles are potential sources. People who were recently hired or promoted may supply a sense of the market rate, Kohn said.

“You can say, ‘Hey, I’m trying to make sure I’m being paid equitably. Are you making over or under X dollars?’ That’s one of my favorite phrases to use, and it invites people into a healthy discussion,” Sam DeMase, a career expert with ZipRecruiter, said. “People are way more interested in talking about salary than you might think.”

You can also reach out to people who left the company, who may be more willing to compare paychecks than current colleagues, DeMase said.

Brag sheet

Keep track of your accomplishments and positive feedback on your work. Compile it into one document, which human resources professionals call a “brag sheet,” DeMase said. If you’re making your request in writing, list those accomplishments when you ask for a raise. If the request is made in a conversation, you can use the list as talking points.

Be sure to list any work or responsibilities that typically would not have been part of your job description. “Employers are wanting employees to do more with less, so we need to be documenting all of the ways in which we’re working outside of our job scope,” DeMase said.

Also take stock of the unique skills or traits you bring to the team.

“People tend to overestimate our employers’ alternatives,” said Oakbay Consulting CEO Emily Epstein, who teaches negotiation courses at Harvard University and the University of California, Berkeley. “We assume they could just hire a long line of people, but it may be that we bring specialized expertise to our roles, something that would be hard to replace.”

Timing matters

Don’t seek a raise when your boss is hungry or at the end of a long day because the answer is more likely to be no, advises Epstein, whose company offers training on communication, conflict resolution and other business skills. If they’re well-rested and feeling great, you’re more likely to succeed, she said.

Getting a raise is probably easier in booming fields, such as cybersecurity, while it could be a tough time to request one if you work in an industry that is shedding positions, Epstein said.

By the same token, waiting for the perfect time presents the risk of missing out on a chance to advocate for yourself.

“You could wait your whole life for your boss to be well-rested or to have a lot of resources,” Epstein said. “So don’t wait forever.”

Responding to “no”

If your request is denied, having made it can help set the stage for a future negotiation.

Ask your manager what makes it difficult to say yes, Epstein suggested. “Is it the precedent you’d be establishing for this position that might be hard to live up to? Is it fairness to the other people in my position? Is it, right now the company’s struggling?” she said.

Ask when you might revisit the conversation and whether you can get that timeframe in writing, DeMase said.

Laura Kreller, an executive assistant at a university in Louisiana, recently earned a master’s degree and asked for her job description to change to reflect greater responsibilities and hopefully higher pay. Her boss was kind but turned her down, citing funding constraints. Kreller said she has no regrets.

“I was proud of myself for doing it,” she said. “It’s better to know where you stand.”

___

Share your stories and questions about workplace wellness at [email protected]. Follow AP’s Be Well coverage, focusing on wellness, fitness, diet and mental health at https://apnews.com/hub/be-well

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October 16, 2025
Nvidia talks unlocking AI | Bank Automation News

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Nvidia wants to unlock new AI applications across the financial services industry as the chipmaker looks to gain more financial institution clients. The trillion-dollar company, which offers solutions in customer experience, cybersecurity, new account acquisition, and regulatory compliance, hopes to develop generative AI uses within finance, Malcolm deMayo, global vice president of financial services […]

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Vaidik Trivedi

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August 21, 2023
Temenos gains 3 new banks in Q2 | Bank Automation News

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Banking software provider Temenos added three banks to its platform in the second quarter as financial institutions migrated to the cloud and digitized their platforms. Temenos’ cloud offering will be central to the company’s “growth plans over the coming years, Andreas Andreades, chief executive of the Geneva-based company, said during its Q2 earnings report today. […]

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Vaidik Trivedi

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August 8, 2023
FIs cautiously approach AI | Bank Automation News

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Financial institutions are looking to AI to create tools for coding, marketing and customer experience. However, use of AI by banks is being monitored as risk remains top of mind for bank executives. Banks are deploying AI throughout their IT infrastructures to make operations more efficient and cost effective, but they are cautious when deploying […]

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Vaidik Trivedi

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July 3, 2023
Mass layoffs are terrible for shareholders, a study finds

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Do mass layoffs reflect poor management? That’s up for debate. But a new analysis suggests the practice harms shareholder returns, and companies should instead consider tactics like a four-day workweek to cut costs.

CFOs tend to underestimate the “organizational drag” that’s created as a result of layoffs, according to the research and advisory firm Gartner. This can inadvertently reduce shareholder returns in the long term instead of protecting them, an analysis finds.

“The first thing to recognize is that there is an immediate upfront cost to layoffs as a business will need to reorganize itself around a smaller group of employees and typically incur costly upfront severance payments,” Vaughan Archer, senior director of research and advisory in the Gartner Finance practice, said in a statement. And what will follow is an increased need for contractor hiring, which can be costly, and remaining employees have a ton of more work and more demands for increased compensation, according to Archer.

Within three years, the forecasted savings from layoffs tend to become offset by the unforeseen consequences, Gartner said. Even if a business avoids “a vicious cycle of employee turnover” driven by overworked staff and low morale, any cost savings from layoffs will likely be lost. And when businesses start to rehire at some point, it will likely be at higher rates than the employees who were laid off.

“In the more negative scenarios, the factors detailed here are also going to harm growth in existing and new business, and ultimately a firm will start losing its customers,” Archer said.

Four days instead of five

A four-day workweek is one of the 10 cost savings actions companies can take instead of mass layoffs, Gartner suggests. Trimming the traditional workweek model to four days is “not about cutting pay, but may control pay growth and staff turnover as employees find better work-life balance and increased productivity as burnout is reduced,” the firm noted.

This work dynamic has certainly been a hot topic of discussion. Monster conducted a survey of 868 workers in March focusing on work productivity. Sixty-one percent said they’d rather have a four-day workweek and 33% say they’d leave their job for one with a shortened week.

Britain announced in February the results of the world’s biggest trial of a four-day working week, Fortune reported. The six-month pilot included over 60 companies and just under 3,000 to feedback on the “100:80:100” working model: 100% pay for 80% of the time, in exchange for 100% productivity. The results included a 65% reduction in the number of sick days, maintained or improved productivity at most businesses, and a 57% decline in the likelihood that a worker would quit, improving job retention.

Andrew Barnes is the cofounder of the nonprofit 4 Day Week Global, helping organizations in various countries, including the U.K., pilot shorter schedules. Barnes also owns Perpetual Guardian, one of New Zealand’s largest corporate trustee companies. During MIT Sloan Management Review’s virtual summit on May 4, he talked about his company’s experience.

“We implemented the four-day workweek five years ago,” he said. “We’re twice as productive on a per capita basis now as our nearest competitor. We’re not seeing any adverse impacts.”

Voluntary reduction in hours, internal redeployment, reducing executive compensation, remote work, voluntary leave of absence, a hiring freeze, benefit cuts, organization-wide pay cuts, and sabbaticals are the other options companies can take instead of mass layoffs, Gartner advises.

If the livelihood and well-being of employees and shareholder returns are on the line, there’s a lot to consider before deciding on a major workforce reduction.

Sheryl Estrada
sheryl.estrada@fortune.com

Big deal

Microsoft has released its 2023 Work Trend Index report, “Will AI Fix Work?” The pace of work has accelerated faster than humans can keep up, and it’s impacting innovation, according to the report. “This new generation of A.I. will remove the drudgery of work and unleash creativity,” Satya Nadella, Microsoft chairman and CEO, said in a statement. The report shares three key insights for business leaders: digital debt is costing innovation, there’s a new A.I.-employee alliance, and every employee needs A.I. aptitude.

Amid fears of A.I. job loss, when asked what they would most value A.I. for, business leaders were two times more likely to choose “increasing employee productivity” (31%) than “reducing headcount” (16%).

The findings are based on 31,000 people in 31 countries, an analysis of both Microsoft 365 productivity signals, and labor trends from the LinkedIn Economic Graph.

Going deeper

“A.I. Can Be Both Accurate and Transparent,” a new report in Harvard Business Review, examines the question: Is there always a tradeoff between accuracy and explainability in artificial intelligence? The research tested a wide array of A.I. models on nearly 100 representative datasets and found that 70% of the time, a more-explainable model could be used without sacrificing accuracy. In many applications, less transparent models come with substantial downsides related to bias, equity, and user trust, according to the report.

Leaderboard

Sarah Wells was promoted to CFO at Spruce Power Holding Corporation (NYSE: SPRU), an owner and operator of distributed solar energy assets across the U.S., effective May 19. Wells succeeds Don Klein, who is departing in connection with the previously announced transition from XL Fleet to Spruce Power executive management. She joined Spruce Power in 2018, and most recently served as SVP of finance and accounting and head of sustainability. Before joining the company, she held various financial roles including finance and SOX manager at Cornerstone Building Brands (formerly NCI Building Systems, Inc.). Earlier in her career, Wells served as a senior auditor at PKF Texas.

William Bardeen was promoted to EVP and CFO at The New York Times Company (NYSE: NYT), effective July 1. Roland A. Caputo, who announced his planned retirement as CFO in December 2022, will remain with the company through Sept. 30 for a transition period. Bardeen, 48, joined The New York Times Company in 2004. He’s served as chief strategy officer since 2018, also overseeing investor relations on an interim basis since March. Before that, he was SVP of strategy and development from 2013 to 2018. Bardeen has also served in various other leadership roles at The Times in corporate development, business development, and strategic planning. Before joining the company, he was a management consultant.

Overheard

“My personal belief is it will be like that movie Her with Scarlett Johansson and Joaquin Phoenix: Humans are a bit boring, and it’ll be like, ‘Goodbye’ and ‘You’re kind of boring.’”

—Emad Mostaque, CEO of the fast-growing London-based startup Stability AI, which popularized the text-t0-image generator Stable Diffusion, hopes A.I. will find us “a bit boring” but acknowledges that in the worst-case scenario it “basically controls humanity,” he told BBC in an interview.

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Sheryl Estrada

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May 15, 2023