InterDigital, Inc. (IDCC)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
InterDigital, Inc. (IDCC) trades at $282.89 with AI Score 87/100 (Grade A+). InterDigital, Inc. designs and develops technologies that enable wireless communications. Market cap: $7.31B, Sector: Technology.
Price live · AI analysis from May 10, 2026Analyst Coverage for IDCC: IDCC does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates IDCC against Technology peers across nine fundamental dimensions and assigns a relatively strong fundamental profile based on the underlying data.
IDCC: 6/7 perspectives are bullish. Dominant signal: Seth Klarman bullish.
How is this calculated? →InterDigital, Inc. (IDCC) Technology Profile & Competitive Position
InterDigital, Inc. innovates wireless and video technologies, licensing its patents across 2G to 5G networks, IoT, and video coding. With a portfolio of approximately 27,500 patents, the company serves a global market, providing technology solutions for wireless communications and connected devices, positioning it as a key player in the technology sector.
What Is the Investment Thesis for IDCC?
InterDigital, Inc. presents a compelling investment case based on its extensive patent portfolio and strategic positioning in the wireless technology sector. With a market capitalization of $7.31B and a P/E ratio of 19.8, the company demonstrates financial stability and growth potential. A gross margin of 83.4% and a profit margin of 44.2% highlight efficient operations and strong profitability. Growth catalysts include the ongoing expansion of 5G networks and the increasing demand for IoT devices, which leverage InterDigital's patented technologies. However, potential risks include evolving technology standards and competition from other technology companies. InterDigital's dividend yield of 0.97% offers a modest return, while its beta of 1.65 indicates higher volatility compared to the market. The company's ability to monetize its patent portfolio and adapt to new technological advancements will be critical for sustained growth.
Based on FMP financials and quantitative analysis
IDCC Key Highlights
- Market Cap of $7.31B reflects investor confidence in InterDigital's technology and market position.
- P/E Ratio of 19.8 indicates a reasonable valuation compared to earnings, suggesting potential for future growth.
- Gross Margin of 83.4% demonstrates strong pricing power and efficient cost management.
- Profit Margin of 44.2% showcases the company's ability to convert revenue into profit, highlighting operational efficiency.
- Dividend Yield of 0.97% provides a steady income stream for investors, enhancing the stock's attractiveness.
Who Are IDCC's Competitors?
IDCC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| AKAM Akamai Technologies, Inc. | $113.10 | -0.06% | $16.44B | 60 |
| MANH Manhattan Associates, Inc. | $153.81 | +1.83% | $9.10B | 87 |
| PAYC Paycom Software, Inc. | $138.96 | -0.18% | $7.58B | 71 |
| PEGA Pegasystems Inc. | $31.36 | +1.03% | $5.24B | 89 |
| NICE NICE Ltd. | $97.57 | +0.85% | $5.72B | 59 |
| NOW ServiceNow, Inc. | $108.69 | +2.23% | $112.09B | 71 |
| RSASF RESAAS Services Inc. | $0.30 | +2.76% | $25.04M | 69 |
| PDFS PDF Solutions, Inc. | $56.75 | -4.11% | $2.34B | 68 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are IDCC's Key Strengths?
- Extensive patent portfolio
- Strong research and development capabilities
- Expertise in wireless communications and video coding
- Established relationships with key industry players
What Are IDCC's Weaknesses?
- Reliance on licensing revenue
- Exposure to patent litigation risks
- Dependence on the adoption of its technologies by manufacturers
- Potential impact from evolving technology standards
What Could Drive IDCC Stock Higher?
- Expansion of 5G networks globally, driving demand for InterDigital's patented technologies.
- Increasing adoption of IoT devices, creating opportunities for InterDigital to license its technologies.
- Potential new licensing agreements with major players in the wireless industry.
- Advancements in video coding and AI technologies, leading to new revenue streams.
- Strategic partnerships and collaborations, accelerating the development and adoption of InterDigital's technologies.
What Are the Key Risks for IDCC?
- Insider selling — insiders were net sellers of roughly $1.8M recently.
- Competition from other technology companies with similar patent portfolios.
- Patent infringement risks and potential litigation expenses.
- Changes in industry standards that could render some of InterDigital's patents obsolete.
- Economic downturns affecting technology spending and licensing revenue.
- Reliance on licensing revenue, which can be volatile and subject to negotiation.
What Are the Growth Opportunities for IDCC?
- Expansion in 5G Technology: The ongoing rollout of 5G networks globally presents a significant growth opportunity for InterDigital. As operators deploy 5G infrastructure, they rely on technologies covered by InterDigital's patents, driving licensing revenue. The 5G market is projected to reach $667.90 billion by 2030, growing at a CAGR of 122.3% from 2021. InterDigital's established position in 5G-related patents gives it a competitive advantage in capturing a share of this expanding market.
- Internet of Things (IoT) Growth: The proliferation of IoT devices across various industries, including automotive, healthcare, and consumer electronics, creates a substantial demand for wireless connectivity solutions. InterDigital's patents cover technologies essential for IoT devices, enabling the company to generate revenue through licensing agreements. The global IoT market is expected to reach $1.46 trillion by 2027, growing at a CAGR of 24.9%. InterDigital's focus on developing technologies for IoT applications positions it to benefit from this rapid growth.
- Advancements in Video Coding and Transmission: As video streaming and content consumption continue to rise, the demand for efficient video coding and transmission technologies increases. InterDigital's expertise in video coding allows it to develop and license technologies that optimize video quality and reduce bandwidth requirements. The video streaming market is projected to reach $184.28 billion by 2027, growing at a CAGR of 20.4%. InterDigital's innovations in video coding provide a competitive edge in this expanding market.
- Artificial Intelligence (AI) Research and Development: InterDigital's investment in AI research and development opens new avenues for growth. AI is increasingly integrated into various applications, including wireless communications and video processing, creating opportunities for InterDigital to develop and license AI-powered technologies. The global AI market is expected to reach $733.7 billion by 2030, growing at a CAGR of 32.0%. InterDigital's focus on AI research positions it to capitalize on this transformative technology.
- Strategic Partnerships and Collaborations: InterDigital can drive growth through strategic partnerships and collaborations with other technology companies, research institutions, and industry organizations. These partnerships can accelerate the development and adoption of InterDigital's technologies, expand its market reach, and enhance its competitive position. By collaborating with key players in the wireless ecosystem, InterDigital can leverage its expertise and resources to create innovative solutions and capture new market opportunities.
What Opportunities Does IDCC Have?
- Expansion in 5G technology
- Growth in the Internet of Things (IoT) market
- Advancements in video coding and transmission
- Strategic partnerships and collaborations
What Threats Does IDCC Face?
- Competition from other technology companies
- Patent infringement risks
- Changes in industry standards
- Economic downturns affecting technology spending
What Are IDCC's Competitive Advantages?
- Extensive patent portfolio of approximately 27,500 patents and patent applications.
- Strong focus on research and development in wireless communications and video coding.
- Established relationships with key players in the wireless ecosystem.
- Expertise in developing technologies for 2G, 3G, 4G, and 5G networks.
What Does IDCC Do?
InterDigital, Inc., founded in 1972 and headquartered in Wilmington, Delaware, specializes in the design and development of technologies that enhance wireless communications. The company's evolution has been marked by its focus on creating solutions for digital cellular and wireless products and networks, spanning from 2G to 5G, and IEEE 802-related technologies. InterDigital develops cellular technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in wireless networks and mobile terminal devices. Its 3GPP technology portfolio extends to 5G NR, beyond 5G (B5G), extended reality over wireless, and cellular Internet of Things (IoT) applications. The company's innovations also cater to emerging sectors such as automobiles, wearables, smart homes, drones, and other connected consumer electronic products. InterDigital provides video coding and transmission technologies and is involved in artificial intelligence research and development. Its patented technologies are integrated into various products, including cellular phones, tablets, notebook computers, wireless personal digital assistants, wireless infrastructure equipment, components, dongles, modules for wireless devices, and IoT devices and software platforms. As of December 31, 2021, InterDigital held approximately 27,500 patents and patent applications related to wireless communications, video coding, display technology, and other areas, solidifying its position as a key technology innovator.
What Products and Services Does IDCC Offer?
- Designs and develops technologies for wireless communications.
- Provides technology solutions for 2G, 3G, 4G, and 5G networks.
- Develops cellular technologies like CDMA, TDMA, OFDM/OFDMA, and MIMO.
- Offers a 3GPP technology portfolio in 5G NR, B5G, and cellular IoT areas.
- Provides video coding and transmission technologies.
- Engages in research and development of artificial intelligence.
- Licenses patented technologies for use in various products.
How Does IDCC Make Money?
- Generates revenue through licensing its patented technologies.
- Licenses technologies for use in cellular phones, tablets, and wireless infrastructure equipment.
- Focuses on developing and patenting technologies for wireless communications and video coding.
What Industry Does IDCC Operate In?
InterDigital operates within the rapidly evolving wireless technology industry, driven by the increasing demand for faster and more reliable connectivity. The global 5G market is projected to reach billions of dollars in the coming years, presenting significant opportunities for companies with relevant intellectual property. The competitive landscape includes companies like AKAM: Akamai Technologies, Inc., MANH: Manhattan Associates, Inc., PAYC: Paycom Software, Inc., PEGA: Pegasystems Inc., and NICE: NICE Ltd., each vying for market share in various segments of the technology sector. InterDigital's focus on licensing its patented technologies positions it as a key enabler of wireless innovation, allowing it to capitalize on industry growth without directly competing in hardware manufacturing.
Who Are IDCC's Key Customers?
- Cellular phone manufacturers
- Tablet manufacturers
- Wireless infrastructure equipment providers
- IoT device manufacturers
- Software platform developers
Net sellingInsider Activity
Over the past six months, InterDigital, Inc. insiders filed 30 SEC Form 4 transactions — 14 sales and 16 purchases. On net that is roughly 203 shares disposed (about $1.8M), a signal worth weighing alongside the fundamentals.
IDCC Valuation & Market Position
With a $7.31B market cap, InterDigital, Inc. sits in the mid-cap segment of the market. Relative to its peer group, IDCC's quantitative score of 87/100 is above the peer average of 73/100.
ROE 33%Key Financial Metrics
Return on equity for InterDigital, Inc. stands at 33.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 17.7%, showing how much profit it generates from its asset base. IDCC trades at a trailing price-to-earnings ratio of 19.82, below the Technology sector average of ~38x. Its free cash flow yield is 7.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.88 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 5.0%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 7/9Financial Health
InterDigital, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 7.48 places it in the safe zone, indicating low near-term bankruptcy risk.
FY2026 estForward Outlook
Wall Street analysts project InterDigital, Inc. revenue of about $706.2M for fiscal 2026, with EPS near $7.21. The estimate reflects 3 contributing analysts.
Company Profile
InterDigital, Inc. operates in the Software - Application industry within the Technology sector. It is headquartered in Wilmington, US. The company is led by CEO Lawrence Chen. IDCC has traded publicly since 1981.
IDCC Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Extensive patent portfolio
- Strong research and development capabilities
- Expertise in wireless communications and video coding
- Established relationships with key industry players
Bear Case
- Reliance on licensing revenue
- Exposure to patent litigation risks
- Dependence on the adoption of its technologies by manufacturers
- Potential impact from evolving technology standards
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
IDCC Latest News
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Zacks Industry Outlook Highlights Ubiquiti, Comtech Telecommunications and InterDigital
Yahoo! Finance: IDCC News · Jun 30, 2026
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3 Wireless Stocks Likely to Tide Over the Industry Challenges
zacks.com · Jun 29, 2026
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How A Pan‑EU Streaming Patent Injunction Could Impact Walt Disney (DIS) Investors
Yahoo! Finance: IDCC News · Jun 18, 2026
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Disney (DIS) Faces Pan European Patent Injunction Across 11 EU Countries
Yahoo! Finance: IDCC News · Jun 17, 2026
IDCC Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for IDCC.
Price Targets
Wall Street price target analysis for IDCC.
IDCC MoonshotScore
What does this score mean?
The MoonshotScore rates IDCC's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
Zacks Industry Outlook Highlights Ubiquiti, Comtech Telecommunications and InterDigital
3 Wireless Stocks Likely to Tide Over the Industry Challenges
How A Pan‑EU Streaming Patent Injunction Could Impact Walt Disney (DIS) Investors
Disney (DIS) Faces Pan European Patent Injunction Across 11 EU Countries
Latest InterDigital, Inc. Analysis
Leadership: Lawrence Chen
CEO
Lawrence Chen serves as the CEO of InterDigital, Inc., leading a team of 430 employees. His career spans various leadership roles in the technology sector, with a focus on driving innovation and strategic growth. Chen's background includes extensive experience in intellectual property management, technology licensing, and business development. He holds advanced degrees in engineering and business administration, providing him with a strong foundation for leading a technology-driven company like InterDigital. His expertise in navigating the complexities of the wireless communications industry is crucial for the company's continued success.
Track Record: Under Lawrence Chen's leadership, InterDigital has focused on expanding its patent portfolio and strengthening its position in the 5G technology landscape. Key achievements include securing significant licensing agreements with major players in the wireless industry and driving innovation in video coding and AI technologies. Chen has also overseen strategic investments in research and development, ensuring that InterDigital remains at the forefront of technological advancements. His tenure has been marked by a commitment to maximizing shareholder value through strategic execution and operational excellence.
What Investors Ask About InterDigital, Inc. (IDCC) — Technology
What does InterDigital, Inc. do?
InterDigital, Inc. is a technology company that designs and develops wireless and video technologies. The company's primary business model revolves around licensing its patented technologies to manufacturers of cellular phones, tablets, wireless infrastructure equipment, and other devices that utilize wireless communications. InterDigital invests heavily in research and development to create innovative technologies for 2G, 3G, 4G, 5G, and beyond, as well as video coding and artificial intelligence. The company generates revenue through licensing agreements with these manufacturers, allowing them to incorporate InterDigital's technologies into their products.
What do analysts say about IDCC stock?
Analyst consensus on InterDigital, Inc. is mixed, with some firms highlighting the company's strong patent portfolio and growth potential in the 5G market. Key valuation metrics, such as the P/E ratio of 19.8, are considered reasonable compared to industry peers. Growth considerations include the company's ability to secure new licensing agreements and capitalize on the increasing demand for IoT devices. However, analysts also note potential risks, such as patent litigation and competition from other technology companies. Overall, analysts view InterDigital as a company with solid fundamentals and growth prospects, but caution investors to consider the inherent risks associated with the technology sector.
What are the main risks for IDCC?
InterDigital, Inc. faces several risks inherent to its business model and the technology industry. One significant risk is patent litigation, as the company's patents may be challenged or infringed upon by competitors. The outcome of these legal battles can significantly impact InterDigital's revenue and profitability. Another risk is competition from other technology companies with similar patent portfolios, which could lead to pricing pressure and reduced licensing revenue. Additionally, changes in industry standards and the emergence of new technologies could render some of InterDigital's patents obsolete, requiring the company to continuously innovate and adapt to stay competitive. Economic downturns can also affect technology spending and licensing revenue, posing a risk to InterDigital's financial performance.
What are the key factors to evaluate for IDCC?
InterDigital, Inc. (IDCC) holds an AI score of 87/100 (high). P/E: 19.8x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does IDCC data refresh on this page?
IDCC prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven IDCC's recent stock price performance?
InterDigital, Inc. (IDCC) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Extensive patent portfolio. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider IDCC overvalued or undervalued right now?
InterDigital, Inc. (IDCC) trades at 19.8x earnings. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying IDCC?
Before investing in InterDigital, Inc. (IDCC), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data as of 2026-05-10.
- Financial metrics are based on the most recent available data.
- Future performance is subject to market conditions and company-specific factors.