Qualcomm's shares gained $13.27 to close at $70.45 in regular trading, marking the stock's best day since 1999.
The two-year legal fight centered around Apple's purchase of modem chips from Qualcomm.More news: New Pixel devices coming on May 7, Google suggests
Apple alleged that Qualcomm - which has made crucial chips for the iPhone - charged an unfair amount to license its patents to place calls, connect to the internet and for other technologies, including audio and video.
Intel said Tuesday it was exiting the phone modem business and would focus its 5G efforts on other devices such as networking gear.
"In order to purchase Qualcomm chips or obtain access to patents pledged to a cellular standard, Qualcomm demands that third parties pay Qualcomm a royalty much greater than the value of Qualcomm's contribution to the standard", Apple argues.
The report also notes that Apple is still working on its own 5G modem chips, "but multiple sources said that the company is unlikely to start using its own chips before 2021 because of the high technical barriers and time-consuming testing by telecom operators in markets worldwide". The two companies have drawn up a six-year license agreement with a two-year option to extend this agreement and a multiyear chipset agreement.More news: Star Wars Celebration cosplay gallery
The biggest victor of this settlement is Qualcomm.
The agreement ends a multi-billion dollar legal battle over smartphone technology and will allow Apple to use Qualcomm's advanced chipsets.
In addition to the federal lawsuit, the companies had lodged litigation in dozens of jurisdictions around the world, including Qualcomm efforts to ban iPhone sales in Germany and China and a state court case in San Diego where Qualcomm accused Apple of helping steal its chip secrets to benefit Intel. Sign up today to get wireless news and updates delivered to your inbox and read on the go. With no other supplier likely to have 5G chips ready in time, it was speculated that Apple could use an in-house solution. Now that Apple will be standardizing on Qualcomm modems going forward, Intel's hopes of growing (or even maintaining) its mobile modem business were effectively reduced to zero.
Shortly after the patent armistice was announced on Tuesday, Qualcomm's stock price was up more than 22 per cent.More news: Game of Thrones Season 8 Premiere: "Winterfell" Review
Based on the decision in the FTC suit, Apple was assumed to have the edge in its case.