InterDigital, Inc. (NASDAQ: IDCC)

InterDigital, Inc. (NASDAQ: IDCC) is a global R&D company focused primarily towards wireless, video, artificial intelligence (AI), and related technologies.

Recommendation Rationale – SELL at USD 379.02

• Financial Highlights: IDCC’s revenue declined YoY to USD 834mn in FY25, compared to USD 868.5mn in FY24, primarily due to higher catch-up revenue recognized in 2024 driven by the Samsung TV and OPPO agreements, along with the Lenovo UK ruling and arbitration agreement. This was partially offset by catch-up revenue recognized from the Samsung arbitration decision and the vivo agreement in 2025.
• Research and portfolio development expenses increased 7.4% YoY to USD 211.4mn in FY25, compared with USD 196.9mn in FY24, mainly driven by higher depreciation and amortization expenses and increased severance costs.
• Trading Near the Resistance: IDCC stock has surpassed its R1 level recommended on 28 January 2026. Therefore, share price can face resistance at the current levels.
• Market Risk: IDCC faces market risks due to its reliance on patent licensing revenues, which remain subject to uncertainties in license renewals, arbitration outcomes, and litigation proceedings. High customer concentration increases earnings sensitivity to key license agreements. Additionally, evolving global IP regulations, geopolitical tensions, royalty rate pressures, and competition from alternative technologies may impact revenue visibility, cash flows, and overall financial performance.

IDCC’s Daily Price Chart

Valuation Methodology: P/E Multiple Approach (FY December'26E) (Illustrative)

Stock might trade at a slight discount to its peers considering the risks associated with the business. For conducting the valuation, the following peers included: Semtech Corp (NASDAQ: SMTC), ServiceTitan Inc (NASDAQ: TTAN), and Motorola Solutions Inc (NYSE: MSI) have been considered.

Considering that the stock has surpassed its R1 level, macroeconomic uncertainty, share price movement, current trading level, and risks associated, the share price can face consolidation at the current levels.

Hence, a ‘Sell’ rating has been provided on the stock at the closing price of USD 379.02 per share, up by 4.42% as on 25 February 2026.

InterDigital, Inc. (NASDAQ: IDCC) is part of Global Big Money Portfolio.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 25, 2026. 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 as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine 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 25-30 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. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.