NEW YORK, April 16 (Xinhua) -- Qualcomm shares surged on Tuesday after the announcement that the company and Apple have settled a lawsuit regarding royalty disputes.

Qualcomm stock skyrocketed after a relatively muted morning session, fueled by the news. Shares of the U.S. chipmaker soared 23.21 percent to close at 70.45 U.S. dollars apiece, boosting its market cap to exceed 85 billion dollars. The company had its biggest one-day gain since 1999. Meanwhile, Apple shares were up slightly to close 0.01 percent higher.

Apple said Tuesday it has reached a settlement agreement with Qualcomm, which will end litigation between the two tech giants over patent and royalty disputes.

The settlement includes a payment from Apple to Qualcomm, according to a statement released by Apple. The two companies did not disclose the specific amount of payment.

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, said the statement.

The two companies started proceedings in a trial in federal court in San Diego, the U.S. state of California, on Monday. Both sides were asking for billions in damages.

Apple accused Qualcomm of engaging in illegal patent licensing practices, and was seeking up to 27 billion dollars in damages, according to media reports.

Qualcomm, for its part, argued Apple and its business partners stopped paying royalties and demanded up to 15 billion dollars in damages.