Qualcomm Chief Executive Officer Cristiano Amon said on Wednesday that Arm Holdings has withdrawn a threat to terminate Qualcomm's license agreement with the chip technology provider.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

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 shares fell 4.2% in premarket trading on Thursday as the chipmaker's downbeat forecast for its patent licensing business overshadowed strong expectations for quarterly sales and profit.

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

Wall Street drifted to a mixed close as drops for Ford Motor and Qualcomm worked against buoyant fashion and cigarette stocks. The S&P 500 rose 0.4% Thursday following healthy gains for stock markets across much of Europe and Asia.

Wall Street is drifting Thursday as gains for fashion brands and cigarette makers help offset drops for Ford Motor and Qualcomm following their latest profit reports. The S&P 500 rose

Wall Street is drifting Thursday as gains for fashion brands and cigarette makers help offset drops for Ford Motor and Qualcomm following their latest profit reports.