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IDCC 
InterDigital Inc (IDCC)
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Upturn Advisory Summary
01/06/2026: IDCC (4-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Number of Analysts
5 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $412
1 Year Target Price $412
| 2 | Strong Buy |
| 1 | Buy |
| 2 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 226.72% | Avg. Invested days 84 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  5.0 | Stock Returns Performance  5.0 |
| Profits based on simulation | Last Close 01/06/2026 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 8.67B USD | Price to earnings Ratio 22.52 | 1Y Target Price 412 |
Price to earnings Ratio 22.52 | 1Y Target Price 412 | ||
Volume (30-day avg) 5 | Beta 1.56 | 52 Weeks Range 168.25 - 412.60 | Updated Date 01/6/2026 |
52 Weeks Range 168.25 - 412.60 | Updated Date 01/6/2026 | ||
Dividends yield (FY) 0.72% | Basic EPS (TTM) 14.91 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 53.5% | Operating Margin (TTM) 46.03% |
Management Effectiveness
Return on Assets (TTM) 18.35% | Return on Equity (TTM) 54.52% |
Valuation
Trailing PE 22.52 | Forward PE 34.72 | Enterprise Value 7624025535 | Price to Sales(TTM) 9.33 |
Enterprise Value 7624025535 | Price to Sales(TTM) 9.33 | ||
Enterprise Value to Revenue 8.21 | Enterprise Value to EBITDA 11.08 | Shares Outstanding 25744552 | Shares Floating 25244850 |
Shares Outstanding 25744552 | Shares Floating 25244850 | ||
Percent Insiders 1.37 | Percent Institutions 105.79 |
Upturn AI SWOT
InterDigital Inc
Company Overview
History and Background
InterDigital Inc. was founded in 1972 and initially focused on providing digital communication technologies. Over the decades, it has evolved into a leading intellectual property (IP) company specializing in mobile technology. Key milestones include its spin-off from ConocoPhillips in 1991 and its significant role in developing and licensing standards-essential patents for mobile communication technologies such as 3G, 4G, and 5G.
Core Business Areas
- IP Licensing: InterDigital's primary business is the licensing of its patent portfolio to companies involved in mobile device manufacturing, network equipment, and other connected technologies. This includes patents related to cellular standards (e.g., 3GPP), Wi-Fi, and other wireless communication technologies.
- Technology Development: The company invests in research and development to create new wireless technologies and secure patents, thereby expanding its IP portfolio and maintaining its competitive edge in the evolving technology landscape.
Leadership and Structure
InterDigital is led by a management team comprised of experienced executives. The company operates with a structure focused on R&D, patent portfolio management, licensing, and legal affairs. Specific details on the current leadership team and organizational chart would typically be found in their latest annual reports or investor relations materials.
Top Products and Market Share
Key Offerings
- Description of Product 1: InterDigital holds a substantial portfolio of patents covering key aspects of 5G technology, including advanced antenna techniques, network slicing, and enhanced mobile broadband. These patents are licensed to mobile device manufacturers, network equipment providers, and semiconductor companies. Competitors in the IP licensing space include Qualcomm, Ericsson, Nokia, and Huawei.
- Market Share Data: Market share is difficult to quantify directly as it relates to IP licensing. However, InterDigital is recognized as a significant player in patent licensing for cellular and wireless technologies.
- Product Name 1: Patents related to 5G technology
- Description of Product 2: InterDigital possesses a robust portfolio of patents essential for 4G LTE technology, which continues to be widely deployed globally. Licenses for these patents are crucial for compliance by companies in the mobile ecosystem. Competitors are the same as for 5G patents.
- Market Share Data: Similar to 5G, quantifying market share is indirect. InterDigital is a recognized licensor for 4G patents.
- Product Name 2: Patents related to 4G (LTE) technology
- Description of Product 3: Beyond cellular, InterDigital licenses patents for Wi-Fi and other wireless communication protocols, broadening its reach across various connected devices. Competitors include patent pools and other IP licensing companies.
- Market Share Data: Not directly quantifiable, but contributes to InterDigital's overall IP licensing revenue.
- Product Name 3: Patents related to Wi-Fi and other wireless standards
Market Dynamics
Industry Overview
The wireless communication industry is characterized by rapid technological advancement, increasing demand for data, and a complex ecosystem of device manufacturers, network operators, and component suppliers. The licensing of intellectual property is a critical component of this industry, enabling companies to utilize patented technologies and driving innovation.
Positioning
InterDigital is a leading independent IP licensing company, holding a strong position in the licensing of patents for cellular and wireless communication standards. Its competitive advantage lies in its deep expertise in wireless technology, its extensive and high-quality patent portfolio, and its track record of successful licensing agreements.
Total Addressable Market (TAM)
The TAM for wireless communication IP licensing is substantial and growing, driven by the proliferation of connected devices, the rollout of new network generations (like 5G and future 6G), and the expansion of IoT. InterDigital is well-positioned to capture a significant portion of this TAM through its strategic licensing programs, focusing on key technologies and major market players.
Upturn SWOT Analysis
Strengths
- Extensive and valuable patent portfolio in mobile and wireless technologies.
- Deep technical expertise and strong R&D capabilities.
- Established track record of successful patent licensing.
- Independent IP licensor, not directly competing with its licensees.
- Strong relationships with key players in the mobile industry.
Weaknesses
- Revenue is heavily dependent on licensing agreements, which can be cyclical and subject to negotiation.
- Potential for litigation risks and challenges to patent validity.
- Reliance on the continued development and adoption of wireless standards.
- Limited diversification beyond IP licensing.
Opportunities
- Growth of 5G deployment and related new services.
- Expansion of the Internet of Things (IoT) and connected devices.
- Emergence of new wireless technologies and standards (e.g., Wi-Fi 7, future 6G).
- Strategic acquisitions of complementary IP portfolios.
- Increased demand for IP in emerging markets.
Threats
- Intense competition from other large patent holders and patent pools.
- Changes in patent law and regulatory landscapes.
- Potential for large technology companies to develop their own essential IP, reducing reliance on external licensors.
- Economic downturns impacting consumer spending on devices and network investments.
- Global geopolitical tensions affecting international trade and licensing agreements.
Competitors and Market Share
Key Competitors
- Qualcomm Inc (QCOM)
- Ericsson AB (ERIC)
- Nokia Corporation (NOK)
- Huawei Technologies (Private)
Competitive Landscape
InterDigital competes in a landscape dominated by large telecom equipment manufacturers and chipmakers who also hold significant patent portfolios. InterDigital's advantage lies in its independence and focus solely on IP licensing, which can make it a more neutral partner for licensees compared to direct competitors who also sell products. However, its revenue can be more susceptible to fluctuations based on individual licensing deal closures and patent litigation outcomes.
Major Acquisitions
Advanced Communications Technologies (ACT) patent portfolio
- Year: 2014
- Acquisition Price (USD millions): 150
- Strategic Rationale: This acquisition significantly strengthened InterDigital's patent portfolio in crucial areas like 4G LTE and Wi-Fi, enhancing its licensing capabilities and market position.
Growth Trajectory and Initiatives
Historical Growth: InterDigital has demonstrated consistent growth in its licensing revenue over the years, driven by the expansion of wireless technologies and its proactive approach to patent enforcement and licensing. Growth has been influenced by the lifecycle of various wireless standards.
Future Projections: Future growth is projected to be driven by the continued rollout and adoption of 5G, the development of new wireless standards, and expansion into emerging markets and new application areas like IoT. Analyst estimates for EPS and revenue growth would provide further insights.
Recent Initiatives: Recent initiatives likely focus on securing new licenses for 5G and beyond, optimizing its existing patent portfolio, and potentially exploring new areas of wireless technology for future patent development. Strategic partnerships and acquisitions could also be part of their growth strategy.
Summary
InterDigital Inc. is a strong independent IP licensing company with a robust patent portfolio in critical wireless technologies like 5G and 4G. Its business model is driven by licensing revenue, which generally yields high-profit margins. The company is well-positioned to benefit from the ongoing global adoption of advanced wireless standards. However, its revenue stream is susceptible to licensing cycle fluctuations and potential litigation, requiring continuous innovation and strategic deal-making to maintain its competitive edge.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company Annual Reports (10-K)
- Company Quarterly Reports (10-Q)
- Investor Relations Websites
- Financial News Outlets (e.g., Bloomberg, Reuters, Wall Street Journal)
- Industry Analysis Reports
Disclaimers:
This analysis is based on publicly available information and is for informational purposes only. It does not constitute investment advice. Financial data and market share estimations are subject to change and may not be entirely precise. Investors should conduct their own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About InterDigital Inc
Exchange NASDAQ | Headquaters Wilmington, DE, United States | ||
IPO Launch date 1990-03-26 | President, CEO & Director Mr. Lawrence Chen J.D. | ||
Sector Technology | Industry Software - Application | Full time employees 430 | Website https://www.interdigital.com |
Full time employees 430 | Website https://www.interdigital.com | ||
InterDigital, Inc. operates as a global research and development company focuses on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing various products and services, including makers of wireless communications devices, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming. It designs and develops a range of innovations for use in digital cellular and wireless products and networks. The company also develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, 4G, and 5G wireless networks, as well as mobile terminal devices; and 3GPP technology portfolio in 5G, 5G, advanced and 6G, as well as technologies for mobile phones, automobiles and autonomous vehicles, wearables, smart factories and smart homes, robots, drones, and other connected consumer electronic products. In addition, it provides video coding and transmission technologies; and researches and develops artificial intelligence and machine learning solutions. Further, the company's patented technologies are used in various products that include smartphones, tablets, consumer electronics, and base stations; televisions, laptops, gaming consoles, set-top boxes, streaming devices, and connected automobiles. InterDigital, Inc. was incorporated in 1972 and is headquartered in Wilmington, Delaware.
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