Key Takeaways IDCC shares jumped 143.6% in a year on solid demand, flexible model and strong cash flow.Earnings estimates surged 167.9% for the current year and 65.3% for the next fiscal.2025 outlook raised with revenue up to $850M and earnings forecast of $14.77.Shares of InterDigital, Inc. (IDCC) have surged 143.6% over the past year, driven by improved market demand across its portfolio on the back of a flexible business model and solid cash flow. Earnings estimates for the current and next fiscal have i ...

Company Performance - Vertiv Holdings Co. (VRT) has returned 33.8% year-to-date, outperforming the average return of 23.6% for the Computer and Technology sector [4] - The Zacks Consensus Estimate for VRT's full-year earnings has increased by 7.8% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [3] Industry Comparison - Vertiv Holdings Co. is part of the Computers - IT Services industry, which has seen an average loss of 14.1% year-to-date, highlighting VRT's strong performance relative to its peers [5] - In contrast, InterDigital (IDCC), another outperforming stock in the Computer and Technology sector, has increased by 78.9% year-to-date and belongs to the Wireless Equipment industry, which has gained 24.4% [4][6] Zacks Rank - Vertiv Holdings Co. currently holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to the broader market [3] - The Zacks Sector Rank places the Computer and Technology group at 3 among 16 sectors, indicating overall strength in this sector [2]

InterDigital (NASDAQ:IDCC) expects Q3 revenues in the range of $155 million to $159 million compared to earlier expectations of $136 million to $140 million, it said on Monday. It now sees EPS of $2.08 to $2.27 vs $1.52 to $1.72 earlier. ...

Core Viewpoint - InterDigital, Inc. has signed a new license agreement with a major Chinese smartphone vendor, increasing its projected annualized recurring revenue (ARR) to a record $579 million, reflecting a $26 million increase from previous estimates [2]. Financial Outlook - The company has revised its outlook for Q3 2025, projecting revenue between $155 million and $159 million, up from a prior estimate of $136 million to $140 million [4]. - Adjusted EBITDA is expected to be between $91 million and $97 million, compared to the previous range of $69 million to $75 million [4]. - Diluted EPS is projected to be between $1.39 and $1.56, an increase from the prior estimate of $0.94 to $1.11 [4]. - Non-GAAP EPS is expected to range from $2.08 to $2.27, up from the previous range of $1.52 to $1.72 [4]. Company Overview - InterDigital is a global research and development company focused on wireless, video, AI, and related technologies, licensing innovations to various sectors including wireless communications, consumer electronics, and cloud-based services [5]. - The company has established licensing agreements with eight of the ten largest smartphone vendors, covering approximately 85% of the global smartphone market [2].

Federal Reserve Decision - The Federal Reserve cut the benchmark lending rate by 25 basis points to a range of 4-4.25%, marking the first interest rate cut of the year [1][9] - The decision was supported by 11 out of 12 voting members, with expectations of two more rate cuts of 25 basis points each this year and additional cuts in 2026 and 2027 [2] AI Infrastructure Sector - A low-interest-rate environment is expected to benefit high-growth sectors, particularly technology, consumer discretionary, and cryptocurrency [3][9] - The AI infrastructure segment is experiencing significant momentum, driven by strong demand and projected spending that will transform various industries over the next five years, including automation, robotics, healthcare, and cybersecurity [5] Recommended AI Infrastructure Stocks - Five mid-cap AI infrastructure stocks are recommended for investment: UiPath Inc. (PATH), Qualys Inc. (QLYS), Calix Inc. (CALX), TaskUs Inc. (TASK), and InterDigital Inc. (IDCC) [4][9] - Each of these companies has a Zacks Rank of 1 (Strong Buy) or 2 (Buy), indicating strong investment potential [4] Company Highlights UiPath Inc. (PATH) - UiPath offers an end-to-end automation platform with advanced AI capabilities, including generative AI features [10] - Expected revenue and earnings growth rates for the current year are 10.1% and 20.8%, respectively, with a 14.3% improvement in earnings estimates over the last 30 days [11] Qualys Inc. (QLYS) - Qualys is benefiting from the demand for cloud-based cybersecurity solutions, with a balanced customer mix that enhances resilience [12] - The company has expected revenue and earnings growth rates of 8.1% and 4.6%, respectively, with a 0.5% improvement in earnings estimates over the last week [14] Calix Inc. (CALX) - Calix provides cloud and software platforms for communication service providers and has integrated AI into its offerings [15][16] - Expected revenue and earnings growth rates for 2025 are 15.3% and over 100%, respectively, with a 25.6% improvement in earnings estimates over the last 60 days [16] TaskUs Inc. (TASK) - TaskUs specializes in outsourced digital services across various sectors and has formed strategic partnerships to enhance its AI capabilities [17][18] - Expected revenue and earnings growth rates for 2025 are 17.8% and 16.3%, respectively, with a 4.2% improvement in earnings estimates over the last 30 days [20] InterDigital Inc. (IDCC) - InterDigital focuses on technology solutions for mobile and IoT markets, with innovations in AI-powered receiver design for future wireless communications [21][22] - Expected revenue and earnings growth rates for the current year are -6.7% and -6.2%, respectively, with a 5.9% improvement in earnings estimates over the last 30 days [24]

Company Overview - InterDigital, Inc. is a mobile, video, and AI technology research and development company focused on wireless technologies and related innovations [4] - The company has been a leader in wireless technology since its founding in 1972 and is listed on Nasdaq [4] Leadership Appointment - Julia C. Mattis has been appointed as the new Chief Licensing Officer, reporting to Liren Chen, President and CEO of InterDigital [1] - Julia has been with InterDigital since 2010, holding several senior positions within the licensing team, including Chief Licensing Counsel and Interim Chief Licensing Officer [2] Licensing Achievements - Under Julia's leadership, InterDigital has signed licensing agreements worth over $4 billion in total contract value since 2021 [3] - More than 80% of the smartphone market is licensed to InterDigital's portfolio, indicating a strong market presence [3] Future Outlook - Julia expressed optimism about leading the licensing programs, highlighting significant growth in consumer electronics and IoT, as well as opportunities in video services [3]

Core Viewpoint - Investors often prefer stocks with a low price-to-earnings (P/E) ratio, believing that lower P/E indicates higher stock value due to growth potential [1] Group 1: P/E Ratio Insights - Stocks with a rising P/E ratio can also yield strong returns, indicating that as earnings rise, stock prices should follow suit [2][3] - A rising P/E ratio suggests investor confidence in a company's fundamentals and expected positive performance [4] - Stocks can experience P/E ratio increases of over 100% from their breakout point, presenting significant investment opportunities if identified early [5] Group 2: Stock Screening Criteria - The screening process for stocks with increasing P/E includes criteria such as current year EPS growth estimates being equal to or greater than the previous year's actual growth [7] - Price changes over different timeframes must show consistent increases, with the four-week price change exceeding the twelve-week change, and the twelve-week change exceeding the twenty-four-week change [8] - Additional criteria include a Zacks Rank of 1 or 2, and an average 20-day trading volume of at least 50,000 to ensure liquidity [9] Group 3: Selected Stocks - The screening narrowed down to four stocks: - Nike (Zacks Rank 2) with an average four-quarter earnings surprise of 41.99% [10] - AGCO (Zacks Rank 1) with an average four-quarter earnings surprise of 316.76% [10] - Docusign (Zacks Rank 1) with an average four-quarter earnings surprise of 6.92% [10] - InterDigital (Zacks Rank 1) with an average four-quarter earnings surprise of 54.27% [11]

Core Points - InterDigital has been awarded a preliminary injunction against Disney by a Brazilian court for patent infringement related to AVC and HEVC video coding technology [1][2] - An independent expert report supported InterDigital's claims that Disney infringed the patents and confirmed that InterDigital does not have a RAND obligation for the asserted encoder claims [2] - The Chief Legal Officer of InterDigital emphasized the importance of the decision for fair value from Disney's use of their technology, which is crucial for the streaming industry [3] Company Overview - InterDigital is a global research and development company focused on wireless, video, AI, and related technologies, providing foundational technologies for various communication and entertainment products [4] - The company licenses its innovations to a wide range of industries, including wireless communications, consumer electronics, IoT devices, and cloud-based services like video streaming [4] - Founded in 1972 and listed on Nasdaq, InterDigital has a strong history in wireless technology and video processing, with significant AI research efforts [4]

Core Insights - InterDigital Inc. (NASDAQ: IDCC) is characterized as an intellectual property compounder with a strong competitive advantage due to its long-term licensing agreements with global OEMs [1] - The company is well-positioned in emerging verticals such as IoT and automotive, which contribute to a resilient cash flow foundation [1] Company Overview - InterDigital has established durable licensing agreements that provide a steady revenue stream [1] - The company's focus on innovative technologies in IoT and automotive sectors indicates potential for growth and diversification [1]

Core Insights - InterDigital will showcase its advanced video technology at the International Broadcasting Convention (IBC) in Amsterdam from September 12 – 15, 2025, focusing on optimized streaming using Versatile Video Coding (VVC) enhanced with Film Grain preservation [1][5]. Group 1: Technology and Innovation - VVC, finalized in 2020, offers up to 50% bitrate reduction compared to HEVC while maintaining equivalent perceptual quality, making it suitable for high-resolution formats like 4K and 8K [3]. - The combination of Film Grain Analysis and Synthesis with VVC aims to optimize streaming quality without compromising artistic intent, addressing the challenge of preserving film grain detail during compression [2][4]. Group 2: Industry Collaboration - InterDigital will demonstrate its codec innovations at the Ultra HD Forum booth, highlighting the industry's adoption of VVC as the foundation for next-generation video delivery [5]. - The collaboration with the Media Coding Industry Forum (MC-IF) emphasizes the collective effort to enhance video quality and efficiency in streaming [5]. Group 3: Company Overview - InterDigital is a global research and development company focused on wireless, video, and AI technologies, providing foundational technologies for connected and immersive experiences [7]. - The company licenses its innovations to various sectors, including wireless communications, consumer electronics, and cloud-based video streaming services [7].