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Shares of Advanced Micro (AMD) Rally on New Intel Licensing Deal

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On Tuesday, shares of Advanced Micro Devices (AMD - Free Report) are rallying, up about 7.4% in midday trading after tech site Fudzilla reported that Intel (INTC - Free Report) has agreed to license its graphics chips after its deal with Nvidia (NVDA - Free Report) expired.

Intel’s deal with Nvidia ended on March 17, 2017. The two companies apparently disagreed over licensing the nForce chipset—a motherboard chipset created by Nvidia—which resulted in a $1.5 billion settlement that Intel agreed to pay for five years, said Fudzilla.

While the report was short on detail, Fudzilla did say that the agreement will now allow Intel to access AMD’s graphics Intellectual Properties, as well as most things dealing with AMD’s Radeon technology. It is still unclear, however, when the deal will be formally announced.

Over the past year, AMD has gained over 211%, and this deal with Intel will likely boost its value even more. AMD is currently a #3 (Hold) on the Zacks Rank, with a VGM score of ‘C.’

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