InterDigital combines genuinely exceptional business quality — 44% gross margins, free cash flow converting at 126% of net income, and a four-quarter earnings beat streak averaging 35% upside to consensus — with the market pricing in uncertainty via a 12% short interest and a declining revenue trend, creating a 36% gap to analyst targets that represents a meaningful opportunity if the revenue trajectory stabilizes.
Thesis pillars
- Declining Revenue Growth Headwind→Stable
- Exceptional Cash Generation Margins→Stable
- Four Quarter Beat Streak→Stable
- +1 more pillar — see the Why tab for full reasoning
InterDigital, Inc. (IDCC) Stock Analysis
Recovery setup
Technology · Software - Application
Hold if already holding. Not a fresh buy at $343.65, but acceptable to hold if already in. Reasons: Overbought (RSI 84); Value-trap signals (2/5): Revenue declining (-13.4% YoY), Material insider selling (10 sells, 0.02% of cap).
InterDigital holds more than 38,000 patents in wireless (3G–5G, Wi-Fi) and video (HEVC, VVC) technologies and licenses them to device makers and service providers worldwide, generating $834.0 million in revenue in 2025. Samsung, Apple, and vivo each comprised 10% or more of 2025... Read more
Hold if already holding. Not a fresh buy at $343.65, but acceptable to hold if already in. Reasons: Overbought (RSI 84); Value-trap signals (2/5): Revenue declining (-13.4% YoY), Material insider selling (10 sells, 0.02% of cap). Chart setup: Death cross but MACD improving, RSI 84. Maintain position. Not compelling to add more. Score 5.6/10, moderate confidence.
Passes 7/10 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 75d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: aggressive.
About InterDigital, Inc.
About InterDigital, Inc.
Samsung, Apple, and vivo each comprised 10% or more of InterDigital's $834.0 million in 2025 consolidated revenue — the company's three largest licensees disclosed in descending order. InterDigital holds more than 38,000 patents spanning 3G through 5G cellular, Wi-Fi, HEVC, and VVC video standards. A July 2025 International Chamber of Commerce arbitration panel set Samsung's royalties at $1.05 billion for the eight-year patent license running January 1, 2023 through December 31, 2030, generating approximately $131 million of recurring annual revenue.
InterDigital earns revenue primarily from fixed-fee patent license agreements, with a smaller portion from variable royalty and hybrid arrangements that include catch-up payments for prior unlicensed periods when new agreements execute. The company covers roughly 85% of the global smartphone market under license and approximately 60% of the tablets and personal computers market. License agreements are in place with Apple (through September 30, 2029), vivo (through June 30, 2028), and other major manufacturers including Samsung, Google, Honor, and Lenovo. A joint licensing program with Sony — the Madison Arrangement — combines their respective digital television and computer display monitor patents for joint licensing; the Samsung TV agreement under that arrangement expired December 31, 2025 and is being actively renewed. InterDigital also pursues video services licensing targeting SVOD and AVOD markets; in 2025 the company initiated patent infringement actions against Disney and Amazon, and courts in Brazil and Germany awarded injunctions against Disney video streaming services.
Show full overview
InterDigital's revenue is subject to renewal risk across its concentrated licensee base. The Samsung TV agreement expiration on December 31, 2025 creates a gap period in which TV-related Samsung revenue cannot be recognized until renewal is completed. The Apple agreement expires September 30, 2029 and will require renegotiation before that date. The 10-K notes that in 2025, Samsung, Apple, and Xiaomi collectively accounted for over 50% of worldwide smartphone shipments, meaning that the commercial health of these three device makers directly shapes the royalty base. If any court or arbitration tribunal sets a worldwide royalty rate unfavorable to InterDigital, the standard-essential patent portfolio could be significantly devalued relative to FRAND royalty benchmarks.
See also: Technology · Software - Application
From InterDigital, Inc.'s most recent 10-K filing, extracted June 10, 2026.
Recent developments
updated 2026-08-15Recent Developments — InterDigital, Inc.
Latest news
- NEWS Is InterDigital (IDCC) Undervalued After Its Recent Pullback? - Yahoo Finance — Yahoo Finance positive
- NEWS Is InterDigital (IDCC) Undervalued After Its Recent Pullback? - finance.yahoo.com — finance.yahoo.com positive
- NEWS InterDigital (IDCC) Stock Looks Undervalued Despite New 6G Focus - simplywall.st — simplywall.st positive
- NEWS InterDigital (IDCC) Stock Still Looks Undervalued On Its 308% Run - Yahoo Finance — Yahoo Finance positive
- NEWS InterDigital (IDCC) Stock Still Looks Undervalued On Its 308% Run - finance.yahoo.com — finance.yahoo.com positive
Generated 2026-08-15T10:44:20Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomerSamsung10-K Item 1A: 'in 2025, Samsung, Apple, and vivo each comprised 10% or more of our consolidated revenue'
- LOWCustomerApple10-K Item 1A: 'in 2025, Samsung, Apple, and vivo each comprised 10% or more of our consolidated revenue'
- LOWCustomervivo10-K Item 1A: 'in 2025, Samsung, Apple, and vivo each comprised 10% or more of our consolidated revenue'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
2 floor-breakers·1 ceiling hit
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $343.65, but acceptable to hold if already in. Reasons: Overbought (RSI 84); Value-trap signals (2/5): Revenue declining (-13.4% YoY), Material insider selling (10 sells, 0.02% of cap). Chart setup: Death cross but MACD improving, RSI 84. Maintain position. Not compelling to add more. Target $393.27 (+14.4%), stop $319.59 (−7.5%), A.R:R 1.0:1. Score 5.6/10, moderate confidence.
Take-profit target: $393.27 (+14.4% upside). Target $393.27 (+14.4%), stop $319.59 (−7.5%), A.R:R 1.0:1. Stop-loss: $319.59.
Overbought (RSI 84); Value-trap signals (2/5): Revenue declining (-13.4% YoY), Material insider selling (10 sells, 0.02% of cap).
InterDigital, Inc. trades at a P/E of 41.3 (forward 29.7). TrendMatrix value score: 4.5/10. Verdict: Hold.
11 analysts cover IDCC with a consensus score of 4.5/5. Average price target: $463.
What does InterDigital, Inc. do?InterDigital holds more than 38,000 patents in wireless (3G–5G, Wi-Fi) and video (HEVC, VVC) technologies and licenses...
InterDigital holds more than 38,000 patents in wireless (3G–5G, Wi-Fi) and video (HEVC, VVC) technologies and licenses them to device makers and service providers worldwide, generating $834.0 million in revenue in 2025. Samsung, Apple, and vivo each comprised 10% or more of 2025 consolidated revenue; a July 2025 ICC arbitration set Samsung's eight-year royalty at $1.05 billion through 2030. Revenue flows primarily from fixed-fee patent license agreements and variable royalty arrangements.