Qualcomm jumps on China 3G expectations

Qualcomm Inc. (QCOM.O: Quote, Profile , Research) shares jumped more than 4 percent on Tuesday after China said it may grant a license for a next-generation cellphone network that would boost royalties to the wireless technology and chip supplier.

Qualcomm shares rose $1.61, or 4.3 percent, to $38.99 in early afternoon trade on Nasdaq.

Ed Snyder, an analyst at Charter Equity Research, said news that China may soon roll out its first third-generation telecoms network — which allows faster Internet speeds and streaming video — helped push up Qualcomm shares.

He said that the company would benefit both from royalty payments for its so-called CDMA technology the network would be based on as well as from sales of chips used in handsets. (Source: Reuters)