Advanced Micro Devices (AMD) - Get Reportstock closed up 8.87% to $9.45 on Tuesday following reports that the global semiconductor company inked a licensing deal with rival technology firm Intel (INTC) - Get Report.

Advanced Micro is reportedly licensing its Radeon graphics processing unit for use in Intel's next generation of CPUs, Investors Business Daily reports. Intel currently holds a license for chipmaker Nvidia's (NVDA) - Get Report technology, but that deal is set to expire in March.

Although the Intel deal has not yet been confirmed, Advanced Micro Devices did tie up an extended three-year strategic partnership with software company Mentor Graphics (MENT) on Monday which will expand their agreement to create an embedded software ecosystem.

About 92.07 million shares of Sunnyvale, Calif.-based Advanced Micro traded hands on Tuesday, well above the 30-day average volume of roughly 48.59 million.

Additionally, TheStreet's Jim Cramer recently identified Advanced Micro as a potential takeover candidate for 2017. Cramer noted that Advanced Micro makes chips in the "hottest" area of semiconductors: gaming.

The company could get purchased by fellow chipmaker Micron Technology (MU) - Get Report , according to Cramer. The deal could boost Micron's exposure to fast-growing markets, allowing the company to escape the cell phone and tablets spaces.

Micron stock also rose on Tuesday, climbing 2.42% to close at $19.06.