Why InterDigital Could Be a Huge AI Winner That Investors Ignore at Their Peril

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]