Licensing Deals Propel InterDigital, Inc. (IDCC) to Record Revenues

InterDigital, Inc. (NASDAQ:IDCC) is one of the best debt-free mid-cap stocks to buy according to hedge funds. On February 5, Chief Executive Officer Liren Chen reiterated that InterDigital, Inc. (NASDAQ:IDCC) had accelerated momentum across its licensing programs, including record performance in smartphones.

The company completed a valuable licensing deal with Samsung and other top-ten smartphone vendors, Vivo and Honor, further strengthening its licensing segment. Consequently, the company ended the year with a near-record total revenue of $834 million and record smartphone revenue of $678.9 million. Similarly, it reported a record net income of $406.6 million and adjusted EBITDA of $588.9 million. Fourth-quarter revenue came in at $158.2 million, surpassing the $144 to $148 million outlook range.

“Through the year we accelerated momentum across our licensing programs, including a record performance in smartphones; we significantly deepened our AI expertise and industry leadership in our research teams; and we drove double digit growth in our patent portfolio to help us deliver long-term value for shareholders,” said CEO Chen.

On February 10, InterDigital, Inc. filed a patent infringement lawsuit against Hisense and TCL. The litigation filed in Germany, Brazil, and India focuses on patents related to HEVC VP9, AV1 video compression, and HDR technologies.

InterDigital, Inc. (NASDAQ:IDCC) is a global research and development (R&D) company that designs and develops foundational technologies used in digital cellular, wireless communication, and video processing. Instead of manufacturing finished products, InterDigital patents its innovations and licenses them to major manufacturers of mobile devices, consumer electronics, IoT devices, and automobiles.

While we acknowledge the potential of IDCC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Stocks to Buy and Hold for the Next 6 Months and 11 Best High Return Penny Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.