Qualcomm soared more than 13% after hours on Wednesday as the company reported fiscal third-quarter earnings that beat expectations and announced a long-term patent agreement with Huawei, settling a major unanswered legal question for the company.
Qualcomm stands to benefit heavily from 5G networks being built. It sells modem chips to phone makers, and licenses critical patents to anyone using 5G technology.
Qualcomm said it had entered into a long-term patent agreement with Huawei, which will be a major vendor of 5G phones and network equipment.
Qualcomm settled similar patent lawsuits with Apple, a major handset customer, last year.
Qualcomm’s view on 5G handset schedules has shifted from last quarter, when Qualcomm said that its customers, which include Apple, were likely to continue to release 5G phones on previous schedules. For more on this read the full CNBC report.
Whether the Trump Administration is for or against such a deal is unknown at this time and whether Qualcomm products using Huawei technology could be banned in the future.