Core Insights - InterDigital, Inc. has signed a new patent license agreement with LG Electronics, covering LG's digital TVs and computer display monitors under a joint licensing program with Sony [1] - The agreement includes licenses for technologies such as ATSC 3.0, Wi-Fi, and video codecs, which are essential for a variety of devices and services in a video-first world [2] Company Overview - InterDigital is a global research and development company focused on wireless, video, artificial intelligence, and related technologies, enabling connected and immersive experiences across communications and entertainment products [2] - The company licenses its innovations to various sectors, including wireless communications, consumer electronics, IoT devices, and cloud-based services like video streaming [2] - Founded in 1972, InterDigital is listed on Nasdaq and is recognized as a leader in wireless technology and video processing [2]

Core Insights - The individual has retired after over 43 years in investment research, now operating independently to provide actionable investment insights [1] - The focus is on rules/factor-based equity investing strategies, emphasizing the use of numbers to inspire human intelligence-driven investment stories rather than serving the numbers themselves [1] - The approach combines factor analysis with classic fundamental analysis to uncover the true story of a company and its stock, highlighting the importance of future potential over past data [1] Investment Experience - The individual has extensive experience covering a wide range of stocks, including large cap, small cap, micro cap, value, growth, and income [1] - Previous roles included managing a high-yield fixed-income fund and conducting research on quantitative asset allocation strategies, which are foundational to modern Robo Advising [1] - The individual has edited and written stock newsletters, notably the Forbes Low Priced Stock Report, and served as an assistant research director at Value Line [1] Educational Contributions - There is a strong passion for investor education, demonstrated through numerous seminars on stock selection and analysis [1] - The individual is the author of two books: "Screening The Market" and "The Value Connection," aimed at enhancing investor knowledge [1]

Core Insights - InterDigital's technologies contribute significantly to the economy, generating $5.7 trillion annually and enabling 35 million jobs, representing over 5% of global GDP [1] - The company is well-positioned for future growth, particularly in the mobile internet sector, with projections indicating mobile traffic will triple to over 280 billion gigabytes by 2027 [2][6] - InterDigital's focus on licensing its technologies rather than creating proprietary products differentiates it from other tech companies [4] Market Opportunities - The mobile smartphone market is expected to grow at a modest rate of 3% from 2025 to 2028, while the Internet of Things (IoT) market is projected to grow at 6% annually, reaching a $400 billion market centered on automotive and connected entertainment applications [6] - Content and cloud services are experiencing double-digit growth rates, with a market size of $475 billion, which is expected to benefit significantly from AI adoption [7] - InterDigital aims to achieve $1 billion in annualized recurring revenue by 2030, driven by growth in these three key markets [7] Investment Perspective - InterDigital is considered an attractive addition to investment portfolios due to its combination of growth potential and value [8] - The stock currently trades at approximately 20 times its trailing earnings, but analysts predict a potential earnings decline in 2026, which could affect its valuation [9] - Despite potential earnings pullbacks, the opportunities presented by AI may mitigate the extent of these declines, making the stock a compelling investment [10]

Core Insights - Innovation, particularly in artificial intelligence, has significantly boosted technology stocks, but InterDigital adopts a unique model by licensing its technology instead of creating proprietary products [1][2] Financial Performance - InterDigital's revenue has shown notable trends, characterized by spikes during new technology adoption followed by consolidation phases where revenue may flatten or decline [4] - The company's revenue more than doubled from 2021 to 2024, with strong performance continuing into the first three quarters of 2025 [5] - Net income increased dramatically from $55 million in 2021 to nearly $500 million over the past 12 months, while free cash flow surged from $91 million to $630 million in approximately five years [5] Licensing Clients - Recent growth for InterDigital has been fueled by strong licensing momentum, with significant deals from companies like Sony and Vizio starting in 2021, followed by Apple, Amazon, and General Motors in 2022 [6] - The client list expanded to include major players in consumer electronics, mobile services, and AI, such as Samsung, Ericsson, Alphabet, and HP [6] Intellectual Property - InterDigital has built a substantial portfolio of intellectual property, generating recurring revenue through its licensing model, particularly benefiting from the AI boom [7]

Company Overview - InterDigital, Inc. specializes in developing wireless and video technologies, playing a significant role in the tech industry by providing essential solutions for mobile devices, networks, and services [1] - The company competes with other tech giants in the wireless technology sector, focusing on innovation and strategic leadership to maintain its market position [1] Recent Transactions - On January 14, 2026, Chen Lawrence Liren, the director, President, and CEO of InterDigital, sold 2,975 shares of Common Stock at $312.72 each, as part of a larger sale of 5,950 shares totaling approximately $1.9 million [2] - This sale represented 3.36% of Chen's direct holdings, reducing his stake to 170,935 shares, with approximately 164,985 shares remaining post-transaction [2] Stock Performance - The weighted average purchase price for the recent transaction was $322.27, while the post-transaction value based on the market close was $309.09 [3] - InterDigital's stock is currently priced at $312.63 on the NASDAQ, experiencing a decrease of 0.46%, equivalent to a drop of $1.43 [3] - The stock has seen a low of $307.53 and a high of $325.44 on the day of reporting, with a one-year high of $412.60 and a low of $169.58, and a market capitalization of approximately $8.05 billion [3]

Group 1 - The investing universe is currently focused on tech stocks, which have provided significant returns over the past 10 to 15 years, outperforming historical norms [1] - The Voyager Portfolio aims to identify overlooked companies that can benefit from favorable trends in technology, rather than just focusing on well-known giants like Nvidia and Alphabet [2] - InterDigital is highlighted as a promising tech company that prioritizes innovation and growth without seeking widespread recognition [3] Group 2 - InterDigital leverages its intellectual property strengths by focusing on research and development, allowing it to maintain proprietary technology and avoid costly reverse engineering by competitors [4] - The company’s business model emphasizes R&D of cutting-edge technology while licensing its innovations to other companies for implementation in consumer products [5] - InterDigital aims to solve complex problems across various industries by obtaining patents on its discoveries, positioning itself to monetize its technology through licensing [6]

InterDigital Conference Call Summary Company Overview - **Company**: InterDigital - **Industry**: Semiconductor and wireless technology - **Focus**: Research and development in wireless, video, AI, and related technologies, licensing innovations globally to various sectors including wireless communications, consumer electronics, IoT, and cloud-based services [1][2] Core Business Model - **Licensing Model**: Operates on an IP as a service model, where customers pay for a subscription to a portfolio of patents, resulting in recurring revenue [6][7] - **Patent Portfolio**: Emphasizes an evergreen patent portfolio, with an average of six new patents added daily, ensuring long-term value [21][22] - **Revenue Growth**: Revenue is growing rapidly, with a year-over-year increase and profitability growing faster than revenue due to high margins [7][25] Financial Performance - **Contracts**: Over $4 billion worth of contracts signed in the last four years, with a focus on long-term agreements averaging five years [23][24] - **Annualized Recurring Revenue (ARR)**: Target to grow ARR from $400 million to $1 billion by 2030, with current figures showing significant progress [27][39] - **Dividend Increase**: Increased dividend by approximately 50% from $0.45 to $0.70 per quarter [26] Market Position and Strategy - **Customer Base**: Major clients include Apple, Samsung, Lenovo, and Oppo, with long-term relationships [8][24] - **Growth Strategy**: Focus on expanding into consumer electronics, IoT, and online streaming, with a goal of monetizing $200 million in recurring revenue from these segments by 2030 [34][35] - **Standard Development**: Actively involved in standard development organizations, influencing the future direction of technology [16][19] Industry Dynamics - **Video Consumption**: Video accounts for 80% of internet traffic, driving demand for efficient video delivery technologies [11][12] - **Emerging Technologies**: Investing in foundational AI technologies, with a focus on integrating AI into wireless and video standards [10][11] Legal and Competitive Landscape - **Litigation**: Recently won a litigation battle against Disney, with ongoing litigation against Amazon, highlighting the company's commitment to enforcing its IP rights [42][43][46] - **Competitive Advantages**: Positioned as a leader in foundational technology development, with a strong emphasis on standardization and long-term partnerships [47][48] Future Outlook - **Long-Term Goals**: Aim to maintain a 60% adjusted EBITDA margin while achieving double-digit year-over-year growth in ARR [39] - **Investment in R&D**: Committed to long-term investments in research and development to sustain growth and innovation [38] This summary encapsulates the key points discussed during the conference call, highlighting InterDigital's strategic focus, financial performance, and market positioning within the semiconductor and wireless technology industry.

Core Viewpoint - InterDigital, Inc. will release its fourth quarter 2025 financial results on February 5, 2026, before the market opens, followed by a conference call to discuss the company's performance [1]. Group 1: Financial Results Announcement - The financial results for the fourth quarter of 2025 will be announced before the market opens on February 5, 2026 [1]. - A conference call will be held on the same day at 10:00 a.m. Eastern Time to discuss the performance [1]. Group 2: Conference Call Details - Participants can access a live webcast of the conference call via the company's website [2]. - Dial-in details for the conference call include a toll-free number for the USA and an international toll number [2]. - A replay of the conference call will be available on InterDigital's website for one year [2]. Group 3: Company Overview - InterDigital is a global research and development company focused on wireless, video, AI, and related technologies [3]. - The company designs foundational technologies for connected experiences in communications and entertainment products [3]. - InterDigital licenses its innovations to various sectors, including wireless communications, consumer electronics, IoT devices, and cloud-based services [3]. - The company has a history of innovation in wireless technology, from early digital cellular systems to advanced 5G and Wi-Fi technologies [3]. - InterDigital is also a leader in video processing and AI research, which intersects with its wireless and video technologies [3].

Core Insights - Lawrence Chen, the president and CEO of InterDigital, sold 5,950 shares for approximately $1.9 million, executed through open-market transactions [3][5] - The sale occurred at a weighted average price of around $322.27, while InterDigital shares closed at $309.23, reflecting a one-year total return of 68.15% [1][6] - Chen's direct ownership decreased to 170,935 shares post-sale, indicating a disciplined approach to diversification rather than a fundamental reassessment of the company's value [2][5] Company Overview - InterDigital is a technology innovator specializing in wireless communications and video technologies, with a strong patent portfolio supporting technologies from 2G to 5G and beyond [4] - The company's strategy focuses on monetizing its intellectual property through licensing agreements with major industry players, maintaining a competitive edge in the evolving landscape of connected devices [4][6] Market Context - The transaction aligns with Chen's historical selling pattern, as the sale size matches his recent median for sell-only transactions, suggesting continuity in his investment strategy [1][5] - InterDigital's shares have significantly outperformed the broader market, driven by strong licensing activity related to 5G and video technologies, reinforcing the durability of its IP monetization strategy [6][7]

Company Overview - InterDigital, Inc. specializes in developing technologies for wireless communications, playing a significant role in the telecommunications industry [1] - The company competes with other tech giants in the wireless technology sector, focusing on innovation and strategic business decisions [1] CEO Transactions - On January 7, 2026, CEO Chen Lawrence Liren sold 2,975 shares at $310.47 per share, managing his personal holdings [2] - Following this sale, Chen holds approximately 170,935 shares, indicating continued significant investment in InterDigital [2] - A similar transaction occurred on December 30, where Chen sold 2,975 shares at a higher average price of $329.50, totaling around $980,000, resulting in a 1.63% decrease in his holdings [3] Stock Performance - InterDigital's stock recently opened at $318.38, reflecting a 2.1% decrease, with a 12-month low of $169.58 and a high of $412.60 [4] - The current stock price is $309.23, showing a slight increase of 0.07%, with fluctuations between $295.06 and $313.88 today [5] - The company's market capitalization stands at approximately $7.96 billion, with a price-to-earnings ratio of 21.48 and a beta of 1.54, indicating moderate volatility compared to the market [5] Financial Health - InterDigital boasts strong financial health, with a current and quick ratio of 1.89 and a low debt-to-equity ratio of 0.02, indicating strong liquidity and minimal debt [4][6] - The trading volume for IDCC today is 468,048 shares, reflecting active investor interest [5]