IDCC — InterDigital
Thesis
Asset-light toll road play for wireless, video, and AI through patent licensing. Patent portfolio generates recurring royalty streams.
Business Model
- Revenue drivers: Patent licensing royalties from wireless (5G/6G), video codec, AI
- Key customers: Consumer electronics OEMs, chip manufacturers
- Competitive moat: Extensive patent portfolio; regulatory and litigation barriers
Key Metrics
| Metric | Current | Prior | Trend |
|---|---|---|---|
| Revenue | |||
| Gross Margin | |||
| FCF |
Catalysts
- 5G/6G adoption expanding royalty base
- AI patent monetization opportunities emerging
- Licensing agreement announcements
Risks
- Patent litigation/invalidation risk
- Regulatory challenges to licensing models
- Cyclicality in device shipments
Valuation
- Price target (Anfa): $700
- Market cap: $9.8B
- Free float: 97.9%
Research Sources
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