Here's why Qualcomm's stock price popped 23%

Shares of Qualcomm soared 23% Tuesday – and remained up Wednesday – in the wake of a late-afternoon filing with the Securities and Exchange Commission, wherein the company announced that it reached a "multi-year" "global patent license agreement" and "chipset supply agreement" with Apple that settles the companies' yearslong intellectual property litigation and appears likely to work out to the benefit of both parties.

In said filing with the SEC, Qualcomm states that as of April 1, 2019, it has directly licensed its relevant patents to Apple for at least the next six years, with the option to extend the agreement for an additional two years. Moreover, Qualcomm will supply chipsets to Apple for use in the latter's devices for several years at least.

In exchange, Apple will make a one-time payment of an unspecified amount to Qualcomm, and pay continuing royalties to boot – also in an amount unspecified.

Moving on:Apple and Qualcomm legal settlement might pave way for first 5G iPhone

Robotic advances:Mush! Watch a team of Boston Dynamics' SpotMini robot dogs pull a truck down the street

Finally, "all worldwide litigation" between the two combatants "will be dismissed and withdrawn," including lawsuits against Apple's contract manufacturers.

Qualcomm is expected to report earnings on May 1, at which time the company promises to provide "further updates" on the details of its agreement with Apple.

But investors don't have to wait even that long for the first detail: Qualcomm expects to receive an "incremental" boost of about an additional $2 per share to its earnings "as product shipments ramp." (No word, however, on whether that's Q2 or full-year earnings we're talking about, or or total earnings over the life of the agreement.)

Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple. The Motley Fool owns shares of Qualcomm and has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has a disclosure policy.

The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.

Offer from the Motley Fool:10 stocks we like better than Apple
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks

*Stock Advisor returns as of March 1, 2019