InterDigital stock is in record high territory as the technology licensing company chases opportunities beyond its core in tech for smartphones and consumer electronics.
On the stock market today, InterDigital stock advanced 1% to close at 234.70. Earlier in the trading session, it hit an all-time high of 237.50.
On Monday, InterDigital stock broke out of 15-week consolidation pattern at a buy point of 231.97, according to IBD MarketSurge charts.
InterDigital shares have been on the upswing since the company reported better-than-expected results for the first quarter on May 1. The Wilmington, Del.-based company also guided higher than views for the second quarter and full year.
In the first quarter, InterDigital earned an adjusted $4.21 a share, up 18% year over year. However, revenue declined 20% to $210.5 million in the period.
InterDigital is a research and development company focused on wireless, video and artificial intelligence technologies. Top customers for its tech include Apple, Samsung, Lenovo and Oppo.
The company sees its biggest growth opportunity in streaming video technology.
InterDigital Stock Rated Outperform
"We believe signing licensing deals with the remaining Chinese smartphone OEMs (original equipment manufacturers), innovating on 6G, further penetrating the consumer electronics market, and expanding into the video streaming market will be solid long-term growth drivers for InterDigital," William Blair analyst Arjun Bhatia said in a client note June 11.
Bhatia rates InterDigital stock as outperform.
InterDigital focuses on foundational research, a key differentiator, he said.
"Unlike peers that prioritize downstream product development, InterDigital concentrates on upstream innovation, placing greater emphasis on the 'R' than the 'D' (in R&D)," Bhatia said. "This approach positions the company to shape the future of standards-setting bodies rather than simply adapt to them."
InterDigital stock is on the IBD Tech Leaders list.
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