InterDigital Secures Contract with U.S. Department of Defense
InterDigital, Inc. has garnered a significant contract from the U.S. Department of Defense to spearhead research and demonstrations focused on advanced spectrum coexistence technologies, applicable to both civil and military sectors.
This initiative sees collaborations with DeepSig and Skylark Wireless, aimed at developing AI-driven solutions for the sharing of mid-band frequencies.
This pioneering effort capitalizes on InterDigital’s established proficiency in wireless technology and artificial intelligence, promoting more efficient operations within defense and commercial communication systems that vie for the same spectrum bandwidth.
A compelling question emerges: How will leading a U.S. Department of Defense project in spectrum coexistence influence InterDigital’s growth trajectory and overall standing within the industry?
Investment Insights on InterDigital
To derive value from InterDigital, one must believe in the company’s ability to sustain and augment its licensing revenues beyond the smartphone sector while maintaining its leadership in wireless standards.
The recent contract with the U.S. Department of Defense positions InterDigital firmly as a technological frontrunner in spectrum sharing; however, its immediate effect on the critical driver of non-smartphone licensing growth appears modest.
Investors must be cognizant of the looming uncertainty regarding revenue contributions from adjacent markets such as IoT and automotive, which may fall short of optimistic forecasts.
In a noteworthy development, the resolution of the Samsung arbitration has resulted in an eight-year licensing deal exceeding $1 billion, reflecting a 67 percent increase from the prior agreement.
This enhances recurring revenue with the world’s foremost smartphone manufacturer and sets a precedent for future negotiations, underscoring the significance of smartphone royalties as a near-term catalyst, in contrast to the burgeoning, albeit uncertain, opportunities associated with the new federal contract.
In light of this robust recurring smartphone revenue, investors should remain vigilant regarding the complexities of monetizing untapped markets…
View the complete narrative on InterDigital (available free of charge!)
InterDigital’s projections indicate revenues of $633.9 million and earnings of $173.4 million by 2028, signifying a 10.8% annual decline in revenue and a reduction of $290.1 million in earnings from the current figure of $463.5 million.
Unearth how InterDigital’s estimates suggest a fair value of $328.75, representing an 8% depreciation relative to its existing price.
Evaluating Diverse Perspectives
Community Fair Values for IDCC as of October 2025
Three fair value assessments from the Simply Wall St Community place InterDigital’s value between $143 and $329 per share.
The momentum of smartphone deals stands in stark contrast to the persistent ambiguity surrounding the expansion of revenue streams beyond current contracts, highlighting significant disparities in participants’ evaluations of the company’s future growth.
Dive into three additional fair value assessments concerning InterDigital—discover reasons why the stock could be valued as high as $328.75!
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