Qualcomm Stock Soars on Apple News - What's Going On?

Qualcomm Inc QCOM stock is trading higher Monday after the chip designer forged a deal with Apple Inc AAPL.

Under the deal, Qualcomm will supply Snapdragon 5G Modem‑RF Systems for the iPhone maker's smartphone launch in 2024, 2025, and 2026. 

Also Read: Apple's iPhone to Bear Brunt of US-China Tensions as the Asia Giant Looks to Extend Ban to State Agencies

The agreement eyes a 20% share of chipset supply for smartphone launch in 2026.

According to Qualcomm, Snapdragon 5G Modem-RF Systems innovatively integrate the modem, RF transceiver, and RF front-end to allow OEMs to develop high-performance 5G devices for global networks rapidly.

The company calls it "the world’s first commercial modem-to-antenna 5G solution."

Recent reports indicated Nvidia Corp's NVDA difficulties in keeping up with the supply of artificial intelligence chips buoyed by the AI frenzy. 

The AI kingpin already contacted Samsung Electronics Co SSNLF for support.

Meanwhile, Apple's rival Huawei Technologies Co, Ltd showcased its latest smartphone offering with cutting-edge processors, intensifying competition with the iPhone maker.

Price Action: QCOM shares traded higher by 7.96% at $114.77 premarket on the last check Monday.