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May 22, 2019
InterDigital (IDCC, $66.00) likely to license 5G tech to Huawei, despite the U.S. ban

InterDigital (IDCC, $66.00) likely to license 5G tech to Huawei, despite the U.S. ban

InterDigital Wireless Inc disclosed that it is free to license its 5G network technology to Huawei Technologies Co Ltd despite the threat of a U.S. ban on selling chips and software to the form of the Chinese communications.

InterDigital and Qualcomm (QCOM) are the two leading American holders of patents for wireless networking technology, including the 5G networks rolling out this year in China. However, last week President Trump issued a sanction on U.S. firms to sell technology to Chinese counterparts though officials say that some of these restrictions are valid for only 90 days.

InterDigital generates revenue by developing wireless technologies and then licenses out its patents. It believes it can still strike the 5G deal with Huawei as export control laws are not applicable to patents, which are public records and therefore not confidential technology.

The same is the situation with Qualcomm who too generates revenue by licensing out patents which only means that the company cannot sue the buyers.

Following Trump’s sanctions, both the companies are now in the middle of a license dispute with Huawei over 5G technology. It is reported that Huawei sued InterDigital in China as the latter was charging too high for patents. On the other hand, Qualcomm has had a patent deal with Huawei since 2014, but Huawei stopped paying in 2017. 

Huawei, the world’s third-largest smartphone provider and also a major provider of telecommunications gear, is a big customer for both InterDigital and Qualcomm. The Chinese tech firm accounted for 14% of InterDigital’s $533 million in revenue in 2017.

Related Ticker: IDCC

IDCC in +6.89% Uptrend, growing for three consecutive days on August 05, 2026

Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where IDCC advanced for three days, in of 327 cases, the price rose further within the following month. The odds of a continued upward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

IDCC moved above its 50-day moving average on July 30, 2026 date and that indicates a change from a downward trend to an upward trend.

The 10-day moving average for IDCC crossed bullishly above the 50-day moving average on August 03, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .

The Aroon Indicator entered an Uptrend today. In of 271 cases where IDCC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Bearish Trend Analysis

The 10-day RSI Indicator for IDCC moved out of overbought territory on August 18, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at .

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 55 cases where IDCC's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .

The Momentum Indicator moved below the 0 level on August 21, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on IDCC as a result. In of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

The Moving Average Convergence Divergence Histogram (MACD) for IDCC turned negative on August 21, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where IDCC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

IDCC broke above its upper Bollinger Band on July 30, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.418) is normal, around the industry mean (28.672). P/E Ratio (40.652) is within average values for comparable stocks, (79.190). Projected Growth (PEG Ratio) (1.319) is also within normal values, averaging (1.753). Dividend Yield (0.008) settles around the average of (0.046) among similar stocks. P/S Ratio (15.361) is also within normal values, averaging (70.832).

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock better than average.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. IDCC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

Notable companies

The most notable companies in this group are Shopify Inc (NASDAQ:SHOP), Salesforce (NYSE:CRM), Uber Technologies (NYSE:UBER), ServiceNow Inc. (NYSE:NOW), Adobe (NASDAQ:ADBE), Intuit (NASDAQ:INTU), Datadog (NASDAQ:DDOG), Autodesk (NASDAQ:ADSK), Workday (NASDAQ:WDAY), Atlassian Corp (NASDAQ:TEAM).

Industry description

Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.

Market Cap

The average market capitalization across the Packaged Software Industry is 10.58B. The market cap for tickers in the group ranges from 291 to 252.39B. SAP holds the highest valuation in this group at 252.39B. The lowest valued company is BLGI at 291.

High and low price notable news

The average weekly price growth across all stocks in the Packaged Software Industry was 1%. For the same Industry, the average monthly price growth was 9%, and the average quarterly price growth was 8%. AIXI experienced the highest price growth at 81%, while LGCL experienced the biggest fall at -82%.

Volume

The average weekly volume growth across all stocks in the Packaged Software Industry was -12%. For the same stocks of the Industry, the average monthly volume growth was -13% and the average quarterly volume growth was 85%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 53
P/E Growth Rating: 76
Price Growth Rating: 54
SMR Rating: 78
Profit Risk Rating: 94
Seasonality Score: -5 (-100 ... +100)
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a developer of advanced wireless technologies

Industry PackagedSoftware

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Industry
Telecommunications Equipment
Address
200 Bellevue Parkway
Phone
+1 302 281-3600
Employees
460
Web
https://www.interdigital.com
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