Qualcomm (QCOM) soars 8% as Apple (AAPL) renews chip agreement through 2026
Qualcomm Technologies (NASDAQ: QCOM) announced today that it has secured an agreement with Apple (NASDAQ: AAPL) to provide its high-end chips for Apple’s smartphones.
The agreement covers the products that are set to be launched in 2024, 2025, and 2026, Qualcomm said.
Shares in the chipmaker soared more than 8% on the announcement.
“This agreement reinforces Qualcomm's track record of sustained leadership across 5G technologies and products,” the chipmaker said in a press release.
Qualcomm’s 5G Modem-RF Systems will be used for new Apple products with the chipmaker noting “terms and conditions [are] similar to previous agreement.”
Qualcomm also noted a 20% share of chipset supply for the smartphone launch in 2026.
The six-year global patent license agreement, which was signed in 2019, remains unchanged. Two companies have an option to extend the agreement for two more years.
By Senad Karaahmetovic