Qualcomm's Stock Surges After Patent License Deal In China

Qualcomm Inc.'s stock climbed 3.4% in premarket trade Wednesday, after the semiconductor company announced a patent license deal with Chinese mobile device maker Xiaomi. As part of the agreement, Xiaomi was granted a royalty-bearing patent license to manufacture and sell 3G and 4G devices. "A license from Qualcomm will play an important role in helping us bring the newest and most innovative products to our growing customer base," said Xiaomi Chief Executive Lei Jun. Qualcomm's stock has tumbled 34% year to date through Tuesday, while the PHLX Semiconductor Index has slipped 0.1% and the S&P 500 has gained 2.1%.