InterDigital, Inc. (IDCC) - Stock Analysis

Last updated: Apr 25, 2026

TechnologyClosed

Research Idea

Research content for general circulation. Not individualized advice. Methodology & Disclosures

InterDigital exhibits strong licensing momentum with record ARR growth (24% Y/Y), raised 2026 revenue guidance (~$820M), strategic AI and mobile tech partnerships, high profitability (~70% EBITDA margin), and a ~22% price surge over 21 days. Risks include litigation timing and quarterly earnings volatility, calling for tactical entry on pullbacks.

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Idea window: 2/10/2026 – 2/17/2026Sector: Technology

AI Analyst Overview

Last Price
$362.24
Market Cap
$9.33B
1D Return
-1.70%
YTD Return
+14.29%

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Valuation Metrics

P/E
22.9
P/B
8.5
P/S
11.2
EV/EBITDA
16.8
Div Yield
0.75%

Fundamental Analysis

8.0

Key Financial Insights: • High margins • Strong cash flow • Rich valuation IDCC appears fundamentally strong with exceptional margins, returns, liquidity, and free cash flow, but its rich valuation and intangible-heavy balance sheet suggest the stock already prices in much of that quality.

strong
valued

Price Behavior

7.0

Key Price Behavior Insights: • Strong breakout • Holding support • Near-term resistance Support Level: $352–$345 Resistance Level: $376.35 IDCC has trended strongly higher over the last month on a sharp breakout and held above prior support, but with price now near resistance and somewhat extended, the next move needs confirmation.

bullish
resistance

Sentiment & News

7.0

Key News Insights: • Licensing progress • AI/video demos • Ownership changes InterDigital's April 2026 news centered on patent licensing wins, AI/video technology demos, and steady institutional activity, signaling ongoing momentum in commercialization and standards leadership.

licensing
AIinnovation
AI

AI Summary

8.0
Positive

IDCC should now be viewed less as a one-off patent monetization play and more as a recurring licensing business with improving ARR visibility, but the investment case still hinges on converting that growth through litigation-heavy enforcement into durable contracts before valuation and legal timing risk bite.

GrowthOpportunity
Legal
ARR
AI summary updated 2 days ago

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 beyond‑5G and 5G NR within 3GPP. Its work spans cellular modem and air‑interface 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 portfolio—about 27,500 patents and applications as of December 31, 2021—and is headquartered in Wilmington, Delaware; it was incorporated in 1972.

Idea History

DateCloseTickerCompanySummaryStatusP/L
Feb 10Feb 17IDCCInterDigital, Inc.
InterDigital exhibits strong licensing momentum with record ARR growth (24% Y/Y), raised 2026 revenue guidance (~$820M), strategic AI and mobile tech partnerships, high profitability (~70% EBITDA margin), and a ~22% price surge over 21 days. Risks include litigation timing and quarterly earnings volatility, calling for tactical entry on pullbacks.
Closed+4.3%
Oct 27Nov 3IDCCInterDigital, 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%
Research content for educational purposes only. Not investment advice. All decisions are your responsibility.