Why InterDigital (IDCC) Is Up 5.2% After Expanding Licensing Deals to EV Charging and Renewing Sharp Agreement

• In October 2025, InterDigital, Inc. announced the renewal of its patent license agreement with Sharp, covering 4G, 5G, Wi-Fi, and HEVC, and the signing of a new licensing deal with an electric vehicle charger manufacturer for home and commercial chargers.
• This expansion of InterDigital's licensing portfolio highlights further diversification of its revenue sources and growing demand for its intellectual property across both consumer electronics and emerging technology sectors.
• We'll explore how securing a new agreement in the electric vehicle charging space could influence InterDigital's investment narrative and future outlook.

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InterDigital Investment Narrative Recap

To be an InterDigital shareholder, you need to believe that recurring, high-margin patent licensing streams from leading smartphone makers can be broadened into adjacent sectors like consumer electronics and automotive. The recent Sharp renewal and EV charger agreement expands the portfolio, but does not materially alter the most important short-term catalyst: actual monetization rates and signing momentum in new verticals. The greatest risk remains that aggressive expectations for licensing ramp in non-smartphone markets may not meet reality.

Among recent announcements, the July 2025 Samsung license renewal stands out as the biggest contributor to InterDigital's record recurring revenues and current investor optimism. This agreement, which establishes higher royalty baselines with the world's largest smartphone maker, is a clear reference point for revenue visibility as the company moves to capitalize on its broader licensing strategy.

However, investors should be aware that, despite expansion into new sectors, licensing income from consumer electronics and IoT remains relatively unproven and...

Read the full narrative on InterDigital (it's free!)

InterDigital's narrative projects $633.9 million revenue and $173.4 million earnings by 2028. This requires a 10.8% annual revenue decline and a $290.1 million decrease in earnings from $463.5 million today.

Uncover how InterDigital's forecasts yield a $328.75 fair value, a 14% downside to its current price.

Exploring Other Perspectives

Three community members at Simply Wall St valued InterDigital between US$143.96 and US$328.75 per share, showing a wide gap between individual outlooks. With expectations high for expanding recurring revenues outside smartphones, explore how different assumptions shape the future risk and reward profile here.

Explore 3 other fair value estimates on InterDigital - why the stock might be worth less than half the current price!

Build Your Own InterDigital Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your InterDigital research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free InterDigital research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate InterDigital's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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