Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 8 Dec, 25 | IDCC | Buy | USD 362.79 | USD 382.0 | USD 400.0 | 9 days | Closed |
10.59%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
InterDigital, Inc. operates as a global research and development company with focus primarily 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 such products and services, including makers of wireless communications, 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, including 2G, 3G, 4G, 5G, and IEEE 802-related 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 automobiles, wearables, smart homes, drones, and other connected consumer electronic products. In addition, it provides video coding and transmission technologies; and engages in the research and development of 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.
Expansion in Adjusted EBITDA: Adjusted EBITDA rose to USD 105 million in Q3FY25 from USD 65 million in Q3FY24, reflecting a 62% YoY increase
Strong Revenue Growth: Total revenue increased to USD 165 million in Q3FY25, compared with USD 129 million in Q3FY24 (+28% YoY)
Limited Progress Toward Resolution of Video Enforcement: While video-related ARR increased, video services remain a relatively small component at USD 97 million ARR in Q3FY25 versus USD 65 million CE/IoT contribution in Q3FY24, highlighting a slower monetization profile relative to smartphones
Higher Share Count Dilutes EPS Base: Weighted average dilutive shares increased to 30.6 million in Q3FY25 versus 27.6 million in Q3FY24, indicating a higher share count that reduces per-share leverage
InterDigital’s monetization model is heavily dependent on successful licensing negotiations and litigation outcomes, creating financial uncertainty if major licensees delay agreements or prolong enforcement proceedings
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 362.79 | 325.0 | 382.0 | 400.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strong Revenue and Earnings Expansion: During the third quarter of FY25, InterDigital delivered substantial financial growth, with total revenue rising 28% year-over-year to approximately USD 165 million, supported by new license agreements and the positive impact of the Samsung arbitration. Adjusted EBITDA increased 62% YoY to USD 105 million, reflecting continued operating leverage, while non-GAAP EPS expanded 56% YoY to USD 2.55. The quarter’s results exceeded the company’s previously raised outlook across key profitability indicators.
Accelerated Recurring Revenue Momentum: InterDigital’s annualized recurring revenue (ARR) increased by 49% YoY to USD 588 million, an all-time high. Smartphone ARR alone reached USD 491 million, nearing the company’s mid-term goal of USD 500 million ahead of schedule. CE/IoT ARR also progressed to USD 97 million, indicating growing penetration in non-smartphone verticals.
Expansion of Licensing Coverage: Operationally, the company continued to expand licensing coverage across major technology verticals. InterDigital now licenses eight of the world’s top ten smartphone manufacturers, representing roughly 85% of global device shipments . Additional contractual wins were achieved in consumer electronics and automotive, further broadening the monetization of its IP-as-a-service model.
Strategic Technology and Research Investments: InterDigital continued to reinforce its technology leadership through targeted investments. The acquisition of Deep Render brought advanced AI-native video compression capabilities and a complementary patent base, accelerating long-term innovation in video standards. The company also strengthened its position in wireless research, including 6G development through continued leadership roles in standards organizations.
Progress in Video Services Enforcement: The company achieved legal progress in its video services program, having secured a preliminary injunction against Disney in Brazil related to video encoding patents. While litigation remains ongoing, these actions demonstrate the company’s readiness to enforce intellectual property rights to ensure fair value realization in emerging service markets.
Solid Capital Allocation and Balance Sheet Strength: InterDigital generated USD 381 million in free cash flow during the quarter, and more than USD 425 million year-to-date, allowing continued reinvestment and return of capital to shareholders. The company increased its dividend by 17% and executed share repurchases, underscoring a disciplined approach to capital allocation while maintaining a strong balance sheet.
Positive Outlook Grounded in Contracted Revenue: Looking ahead, InterDigital expects Q4 and FY25 revenue and earnings primarily from existing agreements, with potential upside from new contracts. Management reiterated long-term targets, including growth in smartphone and CE/IoT ARR, and the pursuit of USD 1 billion+ ARR by 2030.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on InterDigital, Inc (NASDAQ: IDCC) at the current market price of USD 362.79, as on Dec 08, 2025 at 8:30 am PST.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Software - Application
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| IDCC InterDigital Inc |
-5.08 1.54% | 324.30 | 16.04 | 11.99 | 4.48 | 4.23 | 3.79 | 5.82 |
| CRM Salesforce.com Inc |
-14.86 7.05% | 195.95 | 100.89 | 27.47 | 7.42 | 4.34 | 7.44 | 26.81 |
| SAPGF SAP SE |
-10.99 5.30% | 196.50 | 76.28 | 22.88 | 5.61 | 3.84 | 5.59 | 26.18 |
| SAP SAP SE ADR |
-9.86 4.76% | 197.37 | 75.80 | 22.37 | 5.62 | 3.75 | 5.51 | 25.79 |
| INTU Intuit Inc |
-53.08 10.90% | 434.04 | 55.56 | 32.68 | 11.28 | 10.07 | 11.62 | 40.11 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on December 8, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2026 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
