InterDigital, Inc. (IDCC)

InterDigital, Inc. (IDCC) is a global research and development company that provides fundamental wireless and video technologies for mobile devices, networks, and services worldwide. Led by President and CEO Liren Chen, InterDigitals mission is to "invent the foundational technologies that define the future of connectivity and multimedia." The company holds a powerful industry position as a top-tier patent holder in 5G, Wi-Fi, and HEVC/VVC video coding standards. By late 2025, IDCC stock reached record highs as the company hit an all-time high of $588 million in Annualized Recurring Revenue (ARR). Its vision is to be the primary architect of the "6G and AI-Native Wireless Era," ensuring its intellectual property is embedded in every connected device globally.

The business operations of InterDigital are driven by a high-margin licensing model. In fiscal 2025, the company reported a massive 62% year-over-year increase in Adjusted EBITDA, driven by significant new smartphone licensing agreements with major OEMs. The core growth driver for 2026 is the "CE and IoT Expansion," where IDCC aims to more than double its $97 million IoT recurring revenue by 2030. In late 2025, the company reported a stellar 54% Return on Equity (ROE) and returned over $130 million to shareholders through buybacks and dividends. The 2026 strategic roadmap focuses on "Standardizing AI-Driven Video," leveraging its deep R&D pool to define how AI compresses and transmits visual data. By utilizing its "IP Moat"—a portfolio of over 30,000 patents—InterDigital maintains a high-barrier business model that generates substantial free cash flow. This "Recurring Revenue Security" is a primary driver for the IDCC stock price, as the company nears its $500 million mid-term ARR goal for the smartphone program alone.