NEW YORK (TheStreet) -- Shares of Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report were advancing in mid-afternoon trading on Thursday as Wells Fargo reiterates an "outperform" rating on the stock, Barron's reports.

The firm said that AMD could take market share away from chipmaker Nvidia (NVDA) with its new high-end graphics chips called GPUs.

AMD's unit share of the discrete GPU market climbed to 29.4% in the March 2016 quarter from 26.2% in the December 2015 quarter, the firm noted, citing Mercury Research.

Although AMD has yet to compete with Nvidia in more expensive gaming graphics cards, Well Fargo added that AMD's new "Polaris" products are taking aim at Nvidia's "Pascal" offerings.

"We think that AMD might be able to gain further unit share in the graphics card market in the second half of 2016 and possibly through 2017, from a relatively low base," Wells Fargo noted.

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The firm has an "underperform" rating on Nvidia shares, according to Barron's.

Separately, TheStreet Ratings objectively rated AMD stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "sell" with a ratings score of D.

The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and poor profit margins.

You can view the full analysis from the report here: AMD

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