Fundamentals of the nonlinear theory of Fabry-Perot semiconductor lasers have been developed, an integral part of which is natural linewidth theory. The formula for gain depending on the energy flux specifies the basic nonlinear effect in a laser. Necessary conditions for stimulated emission of the first and second kind are presented. Maxwell's equations in the gain medium are applied to obtain equations for energy flux and for the description of non-linear phase effect. Based on the nonlinear theory, a number of experiments have been simulated; it indicates that the nonlinear theory is a new paradigm in laser theory. The nonlinear theory has provided recommendations for the development of lasers with improved properties, such as lasers with increased power and lasers with reduced natural linewidth.