(Reuters) – Qualcomm Inc added $30 billion to its market value after it resolved a legal battle with Apple Inc, a move that secures its leadership in 5G phone chips and could pave the way for a similar settlement with China’s Huawei Technologies.
FILE PHOTO: A sign on the Qualcomm campus is seen in San Diego, California, U.S. November 6, 2017. REUTERS/Mike Blake
The company’s shares, which closed up 23 percent on Tuesday after the announcement, rose as much as 17 percent on Wednesday, hitting their highest in nearly two decades.
The deal with Apple, coming at the cusp of the rollout of high-speed 5G network, could help Qualcomm return to the preeminent position it held in the early 2010s when it dominated the transition to 4G mobile networks and expanded revenues dramatically.
Qualcomm’s fortunes are also looking up since Intel Corp, which had been Apple’s sole iPhone chip supplier for the past year, decided to exit the modem chip business following Qualcomm’s settlement with Apple.
“In the US, around 5G it’s Qualcomm’s world and everyone else is just paying rent,” said Dan Ives, an analyst with Wedbush Securities.
“This was a game changing settlement for Qualcomm and was also a