NEW YORK (TheStreet) -- Shares of QUALCOMM, Inc. (QCOM) are slightly higher in pre-market trade after it was reported that the maker of chips for mobile phones bought Israel-based Wilocity Ltd. in a move to speed up introduction of new Wi-Fi products, Bloomberg reports.
Wilocity's fast gigabit wireless-data capabilities will be included in sample products being shipped to customers, Qualcomm said. Terms of the deal were not disclosed.
Qualcom is now in direct competition with Wi-Fi industry leader Broadcom Corp. (BRCM).
By accelerating the rollout of its new technology, Qualcomm is trying to cut into Broadcom's lead in chips that power home wireless-Internet routers and other consumer electronics, Bloomberg said.
TheStreet Ratings team rates QUALCOMM INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate QUALCOMM INC (QCOM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow."