Universal Display's OLED Breakthrough Paints A More Profitable Future

2025-05-20 07:42:13 ET

Summary

• Universal Display's blue OLED breakthrough is a game changer, unlocking new revenue streams and further energy savings for next-gen displays.
• The company boasts a dominant IP portfolio, high-margin royalty revenue, and a fortress balance sheet with nearly $1B in net cash.
• OLED adoption is accelerating across devices, and Universal Display's technology is poised to gain further market share as costs fall.
• While shares trade at premium multiples, strong growth prospects, high margins, and the blue OLED innovation justify a more optimistic valuation.

Universal Display ( OLED ) is one of the companies we've had on our radar for quite some time, but every time we took a look shares appeared unreasonably expensive, and the technology was still far from the mass adoption inflection point. While many products have been using its OLED technology for high-quality displays for a few years now, competing low-cost LEDs have limited their adoption and pricing power....

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