InterDigital, Inc. (IDCC) - Stock Analysis
Last updated: Jan 13, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Accelerated patent licensing deals including $33M quarterly revenue agreement with Samsung; raised 2025 revenue guidance by $110M; strong margins (~60% net margin, 79% adjusted EBITDA margin); solid balance sheet improvements and bullish technical momentum (+6% above 21-day SMA); upcoming Q3 earnings on Oct 30 a key catalyst.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠High margins ⢠Rising FCF/liquidity ⢠Rerating/deferred revenue IDCC posts durable high margins and sharply rising free cash flow and liquidity, with lower leverage from equity growth but a notable rerating and large intangibles/deferred revenue that call for cautious interpretation of earnings and valuation.
Price Behavior
Key Price Behavior Insights: ⢠Recent pullback ⢠Support near $310 ⢠Loss of momentum Support Level: $310 Resistance Level: $371.63 Over the last month IDCC has cooled from recent highs, slipping from roughly $335.84 to $312.01 after a November peak near $371, signaling moderating momentum with near-term support around $310.
Sentiment & News
Key News Insights: ⢠Insider sell-off ⢠Institutional cuts ⢠Continued outreach Significant insider and institutional selling at InterDigital in late Dec 2025âearly Jan 2026, contrasted by continued investor outreach (Needham conference), suggests liquidity-taking that may weigh on near-term sentiment.
AI Summary
InterDigital has evolved into a cash-rich, high-margin IP franchisor whose valuation now hinges on concentrated, lumpy smartphone licensing and litigation-driven timingâmake this a high-conviction, catalyst-driven trade and watch non-phone ARR growth, key arbitration/litigation outcomes, and the ~310 support level for actionable entry/exit signals.
Description
InterDigital designs and develops technologies and standards used to enable wireless communications across the United States, China, South Korea, Japan, Taiwan and Europe, covering generations from 2G through 5G and work on beyondâ5G and 5G NR within 3GPP. Its work spans cellular modem and airâinterface techniques, video coding and transmission, and research in artificial intelligence, with implementations found in mobile devices, network infrastructure, components and a range of connected consumer and automotive products. The company holds a sizable patent portfolioâabout 27,500 patents and applications as of December 31, 2021âand is headquartered in Wilmington, Delaware; it was incorporated in 1972.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Oct 27 | Nov 3 | IDCC | InterDigital, Inc. | Accelerated patent licensing deals including $33M quarterly revenue agreement with Samsung; raised 2025 revenue guidance by $110M; strong margins (~60% net margin, 79% adjusted EBITDA margin); solid balance sheet improvements and bullish technical momentum (+6% above 21-day SMA); upcoming Q3 earnings on Oct 30 a key catalyst. | Closed | +2.5% |