Under the agreement, Intel will buy intellectual property from Nokia related to high-speed wireless technology. The two companies also said they plan to collaborate on open-source mobile Linux software projects.
For Intel, analysts say the deal gives them a chance to take on leading cellphone chip makers such as Qualcomm , and Texas Instruments.
And in return, the pact may help Nokia better compete with smartphone rivals Apple, Research In Motion and Palm.
What’s the trade?
I like Nokia very much, says Karen Finerman. In fact I'm long. But I’m in this stock for valuations which I find very attractive.
I’m bullish Intel, counters Tim Seymour. It seems like this agreement is a smart one.
And as a result of this deal, it might be time to get out of Texas Instruments, suggests Joe Terranova.
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Trader disclosure: On June 23rd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (INTC) & Is Short (INTC) Calls; Najarian Owns (JPM) & Is Short (JPM) Calls; Najarian Owns (ORCL) Call Spread; Najarian Owns (YHOO) Call Spread; Terranova Owns (TER), (XBI), (BTU), (MSFT), (HES), (RIMM), (BTU), (MS); Terranova Is Short (GENZ) Call Spreads; Terranova Owns (GENZ) And Is Short (GENZ) Calls; Terranova Owns (DIS) Call Spreads; Terranova Is Short (XOM) Call Spreads; Finerman Owns (TBT); Finerman's Firm Owns (MSFT), (PBR), (RIG), (NOK), (TBT), (YUM), (WMT); Finerman's Firm Owns (BAC) Preferred; Finerman's Firm Is Short (BAC), (IJR), (MDY), (IWM), (SPY), (USO),(CAKE); Seymour Owns (BAC), (AAPL), (EEM), (FXI), (NOK), (PWRD)
Cortes is short (KBE)