Shares of Advanced Micro Devices (AMD)  closed over 11.6% on Tuesday on heavy trading volume of around 151 million shares vs. the monthly average of about 62 million shares after Intel (INTC)  agreed to license AMD's graphics processing unit,  Fudzilla reports.

Intel was in need of a GPU license after its previous agreement with chipmaker Nvidia (NVDA) ended on March 17.

Nvidia and Intel had disagreements over the Nforce chipset and the licensing, that resulted in a $1.5 Billion settlement that Intel agreed to pay for five years, the report said.

Today's agreement will allow Intel to access AMD's graphics Intellectual Properties.

Shares of AMD were climbing over 7.5% during late morning trading on Tuesday following the report.  

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