Sector-wide rotation from cyclical to growth equities has strengthened demand for X. Forecast models incorporating macroeconomic recovery scenarios place the stock’s fair value between $59 and $63 in the near term. To project free cash flow (FCF), let's use a 53% operating cash flow (OCF) margin and a slightly higher than $71 billion capex estimate (used in my last article): In its latest quarter, Broadcom reported $15.95 billion in revenue alongside $8.4 billion in earnings , with quarterly revenue expanding 16.4% year-over-year. Over the trailing twelve months, revenue reached $59.93 billion and net income $18.81 billion, producing a 31.6% profit margin . Analysts expect 2025 EPS of $6.74 , up from $4.87 last year, and 2026 EPS at $9.23 , implying nearly 37% growth. Revenue is forecast to climb from $63.3 billion in 2025 to $84.1 billion in 2026 , representing more than $20 billion in incremental annual sales within two years. This pace of expansion reflects Broadcom’s ability to capture both hardware and software revenue streams tied to the AI buildout. Analysts adjusting their X stock price forecast upward cite macro tailwinds in the digital transformation segment and resilience in consumer spending. These factors, paired with robust Q2 revenue guidance, underpin optimism.
