NEW YORK (TheStreet) -- Shares of Qualcomm (QCOM) - Get Report were climbing in late-morning trading on Friday after a report yesterday that the company is in talks to buy semiconductor company NXP Semiconductors (NXPI).
"This is a deal that must happen for Qualcomm," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.
"This is a deal that will happen, I believe," Cramer added.
Qualcomm wants the cash flow from NXP, which is "bountiful," according to Cramer. The chipmaker also wants NXP's automotive products.
"They're looking for $120 (per share), I've been told," Cramer said.
"One of the things people don't realize, NXPI has cracked China better than any semiconductor in the world. The Chinese government likes them, 20-year relationship with the Chinese government. Qualcomm needs that even more," Cramer noted.
Additionally, Qualcomm stock was upgraded to "buy" at Mizuho today.
Shares of NXP were jumping 8.1% to $103.91 late this morning.
(NXP is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trialhere.Qualcomm is held in David Peltier's Dividend Stock Advisor portfolio. See all of his holdings with afree trial.)
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on Qualcomm stock.
The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and attractive valuation levels.
The team believes its strengths outweigh the fact that the company shows weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: QCOM