Do the record market capitalizations of firms focused on artificial intelligence (AI) reasonably reflect future profit growth, after accounting for huge investments in data centers and ongoing costs to train and deploy AI models? In his May 2026 paper entitled "Valuation and Accounting Issues in the AI Ecosystem", Andreas Haaker examines valuation and accounting problems associated with the AI boom, with focus on capital market narratives, accounting practices and free cash flow generation. Based on AI firm stock prices, their reports/projections and general accounting principles, he concludes that:
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