Qualcomm shares rise, analyst sees faster growth in smart phones using Snapdragon processors

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Qualcomm stock up as smart phone growth escalates

SEATTLE — Shares of Qualcomm Inc. jumped Monday after an analyst said the mobile device chip maker stands to benefit as smart phones grow increasingly popular.

THE SPARK: Goldman Sachs added Qualcomm to its Conviction List and said the smart phone market is growing even faster than expected.

THE BIG PICTURE: More people are opting for a cell phone that can also surf the Web, check e-mail, play music, movies and games, shoot home movies and run an increasing number of programs that make everyday tasks easier.

Researchers at comScore Inc. say that as of May, about 21 percent of cell phone owners in the U.S. had smart phones. Android, the phone software from Google Inc., gained new users in May faster than Research In Motion Ltd.’s BlackBerry or Apple Inc.’s iPhone.

THE ANALYSIS: Falling prices and tiered data plans will help speed up smart phone sales, Goldman Sachs analyst Simona Jankowski. She boosted her forecast for smart phone sales by 8 percent for the year.

Qualcomm will benefit from the trend, and from Android’s growing reach, because the chip maker has about 80 percent share in Android-based smart phones. Phones including HTC’s Incredible and Evo 4G use Qualcomm’s Snapdragon processor; a new, faster version of the chip is due out in Android and Windows phones expected to launch by the holidays.

SHARE ACTION: Up $1.26, or 3.7 percent, to $35.17 in afternoon trading.