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Cramer: Qualcomm is now a ‘buy’

Qualcomm's new deal with Chinese electronics firm Xiaomi makes the stock a buy, CNBC's Jim Cramer said Wednesday.

"They signed a deal with Xiaomi … that is going to pay them for 3G and 4G. Everybody is going to fall on the line of Xiaomi. This is the beginning of the move that the activists wanted," Cramer said on "Squawk on the Street."

Barry Rosenstein's Jana Partners said earlier this year Qualcomm should spin off its chip unit from its patent-licensing business. Jana is one of Qualcomm's largest shareholders.

Shares of the chipmaking giant have fallen nearly 30 percent this year, but gained about 7 percent Wednesday morning.

"Qualcomm's a buy, even up here," Cramer said.

DISCLOSURE: Cramer's trust did not own Qualcomm shares when this article was published.