Back in October, during the Snapdragon Summit, news broke that ARM was going to terminate its licensing agreement with Qualcomm. This was because ARM said

Qualcomm Chief Executive Officer Cristiano Amon said on Wednesday that Arm Holdings has withdrawn a threat to terminate Qualcomm's license agreement with the chip technology provider.

Arm threatened to axe Qualcomm's license to develop chips based on Arm's designs. But a recent court loss convinced Arm to throw in the towel.

Despite all these outsized beats, Qualcomm stock took a nosedive about 20 minutes after the earnings release, before the earnings call began. Intellectual property licensing reven

Qualcomm on Wednesday forecast sales and profits above analyst expectations as artificial intelligence features helped fuel demand for smartphones, and its share price fell after the bell on expectations of flat revenue from its patent licensing business.

Qualcomm stock is lower Thursday even after the chipmaker reported strong earnings and gave an encouraging outlook. This is what investors need to know.