Shares of Advanced Micro Devices (AMD) - Get Report climbed 1.6% to $27.84 Monday after the chipmaker said it signed a deal in which Samsung will licence AMD graphics IP.

The agreement, described as a multi-year strategic partnership in ultra low power, high performance mobile graphics IP based on AMD Radeon graphics technologies, will have Samsung pay AMD technology license fees and royalties.

AMD will license custom graphics IP based on the recently announced RDNA graphics architecture to Samsung for use in mobile devices, including smartphones, and other products that complement AMD products.

"This strategic partnership will extend the reach of our high-performance Radeon graphics into the mobile market, significantly expanding the Radeon user base and development ecosystem," Lisa Su, AMD president and CEO, said in a statement.

Last week, AMD released its Ryzen PC CPUs, as well as a new GPU, as Su delivered its Computex keynote speech. With the release of the new chips, manufactured using Taiwan Semiconductor's (TSM) - Get Report  7-nanometer processor, AMD is aiming to compete with Intel's (INTC) - Get Report and Nvidia's (NVDA) - Get Report  similar products.

The Ryzen 7 3700X, an 8-core, third-gen CPU, will sell for $329.

Nvidia is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells NVDA? Learn more now.