Shares of Qualcomm jumped as much as 5 percent on Wall Street early Thursday morning after news of a deal between the Commerce Department and Chinese telecom giant ZTE.
ZTE, a maker of smartphones, is a major customer for the San Diego-based wireless pioneer’s chips but had faced a ban on purchases over national security concerns.
The deal announced on Thursday ends sanctions in return for paying a $1 billion fine and allowing a U.S. security team to monitor ZTE.
Qualcomm’s stock was up nearly 5 percent at the market opening, but than eased to about 2 percent later in trading. Shares were trading around $61, near the level during the Broadcom takeover battle.
Still at issue for Qualcomm is Chinese approval of its proposed merger with Dutch semiconductor company NXP.
