Qualcomm stock has exploded over 13% higher, jumping to $65 per share and adding over $7 billion in market cap almost instantly, following a report from CNBC's David Faber, since confirmed by the company, that the years-long, and often heated litigation between Qualcomm and Apple has been settled in the form of a "payment" from Apple to Qualcomm, resulting in a six-year license agreement,(including a two-year option to extend, and a multiyear chipset supply agreement).

While QCOM stock soared, AAPL stock dipped modestly lower although it has since rebounded back in the green.

Bloomberg adds some other initial details:

• QUALCOMM AND APPLE AGREE TO DROP ALL LITIGATION
• QCOM, APPLE SETTLEMENT INCLS PAYMENT FROM APPLE TO QUALCOMM
• QUALCOMM INC: APPLE WILL PAY ROYALTIES TO QUALCOMM
• QUALCOMM: SETTLEMENT INCLUDES A ONE-TIME PAYMENT FROM APPLE

The two companies had started proceedings in a trial in federal court in San Diego on Monday, which was expected to last until May.

As Faber adds, in November, Qualcomm CEO Steve Mollenkopf said that he believed that the two companies were on the “doorstep” to settling. Apple CEO Tim Cook contradicted him shortly after, saying that Apple hasn’t been in settlement discussions since the third calendar quarter of 2018.

From the notably brief press release:

Qualcomm and Apple® today announced an agreement to dismiss all litigation between the two companies worldwide. The settlement includes a payment from Apple to Qualcomm. The companies also have reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend, and a multiyear chipset supply agreement.

The sharp spike in QCOM stock helped move the entire market higher, just as the S&P was once again threatening to dip in the red, pushed by tech names in general, and the semiconductor space in particular as the SOX, Semiconductor Index jumped 2.6% to a new record high.