TacticScaleWhat InterDigital Does & How It Makes Money (IDCC)
Updated October 2026 · reflects InterDigital's latest reported financials
Research company that licenses wireless, video and AI patents. It licenses its patented wireless, video and AI technologies to device makers and cloud/streaming service providers and collects license fees and royalties.
How InterDigital makes money
It licenses its patented wireless, video and AI technologies to device makers and cloud/streaming service providers and collects license fees and royalties.
What InterDigital does
InterDigital is a research and development company based in Wilmington, Delaware, founded in 1972. It develops wireless, video and AI technologies. Its cellular work covers the core radio techniques behind 2G to 5G, including CDMA, OFDM and MIMO, and extends into 5G-Advanced and 6G through 3GPP standards. It also develops video coding and transmission technologies and AI/machine learning solutions. The company earns money by licensing its patents rather than by selling hardware. Licensees include makers of smartphones, tablets, TVs, laptops, gaming consoles, set-top boxes, base stations and connected cars. It also licenses to cloud services such as video streaming, video conferencing, user-generated content sharing and gaming. This means its revenue depends on how widely standards-based wireless and video technology is used.
Products & services
- Cellular patent portfolio (2G/3G/4G/5G)
- 5G-Advanced and 6G 3GPP technologies
- Video coding and transmission technologies
- AI and machine learning solutions
- Technology licensing for consumer electronics and streaming
What is InterDigital worth?
On an owner-earnings DCF, InterDigital's most-likely value is about $378 versus a recent price near $331 (14% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$169) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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