Nasdaq 4000: Interdigital Rides Qualcomm's Coattails

SAN FRANCISCO -- Despite indications from investors Wednesday that Qualcomm (QCOM Quote) has no worries, the wireless technology provider may actually have a competitor. Or at least some investors seem to think so.

Interdigital Communications' (IDC Quote) stock soared on Wednesday, leaping 61%, or 14 7/16, to 38 at the New York close (it subsequently rose as high as 55 in after-hours trading before settling at 50). Perhaps that's because King of Prussia, Pa.-based Interdigital has patents based on the very wireless technology that has investors so worked up about Qualcomm.

Qualcomm climbed a mere 31% to 659 Wednesday after a PaineWebber analyst started coverage with a 1,000 price target. (PaineWebber hasn't performed underwriting for Qualcomm.) Analyst Walter Piecyk's bet is that Qualcomm's CDMA wireless standard will become the global standard for wireless technology, generating enormous growth, a lush, unfettered royalty stream and 50% pretax profit margins for years to come. ...