Why I'm so bullish on AI, and why I ignore the negative free cash flow of big tech companies: Philip Fisher described the classic tension in *Extraordinary Stocks and Extraordinary Profits*: Exceptional companies will temporarily suppress free cash flow and reported earnings when they heavily invest in expanding capacity to generate long-term profitability. The market often sees near-term cash burn as a problem, rather than the necessary cost of building the next phase of growth. Fisher believed that investors who focus on long-term profit prospects and are willing to ignore temporary expenses will benefit when the results arrive. Today, the Nasdaq Composite's trailing PE ratio is 20, while the peak in March 2000 was around 190. This round of AI growth is not simply a narrative-driven story of exponential expansion.