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WILMINGTON, Del. - InterDigital, Inc. (NASDAQ:IDCC), a $4.91 billion market cap company specializing in mobile, video, and AI technology research and development, has announced a new multi-year licensing agreement with PC manufacturer HP Inc. The deal grants HP access to InterDigital’s Wi-Fi and video decoding technologies for use in its personal computers. The company maintains impressive gross profit margins of 80%, reflecting the strength of its intellectual property portfolio.
Julia Mattis, InterDigital’s Interim Chief Licensing Officer, stated that the agreement would benefit HP’s PC customers and support further investment in InterDigital’s wireless, video, and AI research. Mattis also praised the professional conduct of HP during negotiations.
With this agreement, InterDigital extends its market reach, now having licensed over half of the global PC market. The company, founded in 1972 and listed on NASDAQ, is known for its contributions to wireless technology, including innovations used in digital cellular systems, 5G, and advanced Wi-Fi technologies. InterDigital also holds a significant position in video processing and encoding/decoding technology, alongside a robust AI research program. According to InvestingPro data, the company’s stock has delivered an impressive 102% return over the past year, and analysis suggests the stock is currently trading below its Fair Value.
The partnership with HP, one of the world’s leading PC manufacturers, is an example of InterDigital’s ongoing efforts to license its portfolio of technologies to major industry players, providing them with foundational technologies that enable connected and immersive experiences across a variety of products and services. InvestingPro subscribers can access 13 additional key insights about InterDigital, including detailed analysis of its financial health, which currently rates as "GREAT" based on comprehensive metrics and expert evaluation.
This licensing agreement is based on a press release statement from InterDigital, Inc. and reflects the company’s continued expansion into the consumer electronics market by providing its patented technologies to global brands.
In other recent news, InterDigital, Inc. reported impressive fourth-quarter earnings, with adjusted earnings per share of $5.15, significantly surpassing analyst expectations of $0.91. The company’s revenue for the quarter reached $252.8 million, exceeding the consensus estimate of $244.24 million and marking a 140% increase from the previous year. InterDigital CEO Liren Chen credited the robust performance to momentum across licensing programs and new agreements with major device makers. Looking forward, InterDigital provided a positive full-year 2025 revenue outlook, projecting $660 million to $760 million, above the consensus estimate of $533 million. Additionally, the company announced an increase in its quarterly dividend from $0.45 to $0.60 per share, starting in the second quarter of 2025.
In executive news, InterDigital revealed a leadership change as Eeva Hakoranta stepped down as Chief Licensing Officer, transitioning to a Senior Advisor role. Julia Mattis will serve as interim Chief Licensing Officer while the company searches for a permanent successor. Meanwhile, Jefferies analysts raised their price target for InterDigital to $210, maintaining a Hold rating, citing a steady stream of catch-up payments and potential agreements. This adjustment reflects the analysts’ recognition of the company’s consistent performance and future revenue growth potential.
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