InterDigital (IDCC) has suddenly moved higher on the market radar after winning key patent cases against Disney in Germany and Brazil, while also opening a fresh wave of infringement litigation against Amazon.

See our latest analysis for InterDigital.

Those courtroom wins seem to be reinforcing an already strong run. The latest share price is $355.18, with an 81.14% year-to-date share price return on top of an 85.90% one-year total shareholder return. This suggests momentum is still very much with the bulls.

If InterDigital’s surge has you rethinking where innovation and licensing power meet, this could be a smart moment to scout high growth tech and AI stocks for other tech names with compelling stories.

Yet with revenue and earnings still shrinking, even as the stock trades just 16 percent below its analyst target, investors face a tougher question: Is InterDigital still undervalued, or is the market already pricing in its future growth?

With InterDigital closing at $355.18 against a narrative fair value of $412, the prevailing story is that the market is not fully crediting its future earnings power.

The analysts have a consensus price target of $266.5 for InterDigital based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $311.0, and the most bearish reporting a price target of just $220.0.

Read the complete narrative.

Want to see why a shrinking revenue base can still support a premium profit multiple? The narrative leans on resilient margins, rich future earnings, and a surprisingly demanding valuation hurdle. Curious how those moving parts add up to that fair value?

Result: Fair Value of $412 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, that picture could change fast if 6G adoption or non smartphone monetization underwhelm, or if regulators clamp down harder on patent licensing economics.

Find out about the key risks to this InterDigital narrative.

While the narrative fair value suggests upside, our DCF model paints a harsher picture, with InterDigital trading well above a DCF fair value of $70.74. That implies the current price bakes in rich assumptions about cash flows, leaving investors to ask: what if growth disappoints?

Look into how the SWS DCF model arrives at its fair value.

If you see the story differently or want to dig into the numbers yourself, you can build a personalized view in minutes: Do it your way.