HP Inks Tablet PC Deal With Transmeta

Transmeta Hewlett-Packard

Shares of Transmeta jumped by 18 percent in morning trading to $2.81 per share.

Under terms of the deal, HP said it will use Transmeta's 1GHz Crusoe TM5800 processors in its Compaq Evo Tablet PC. HP is slated to roll out the tablet PC later this year in conjunction with the new Microsoft Windows XP Tablet PC edition operating system.

The boost to Transmeta shares comes as the company stock is trading above its 52-week low of $1.17 but well short of its 52-week high of almost $15. Since becoming a publicly traded stock in late 2000, Transmeta has had difficulty cracking the U.S. market with its Crusoe processors, designed to use less power than conventional processors in mobile computing solutions.