NEW YORK (TheStreet) -- Shares of Advanced Micro Devices (AMD) - Get Report were gaining 9.5% to $2.02 on heavy trading volume Friday following a report that Microsoft (MSFT) - Get Report is interested in buying the chipmaker.

Microsoft is "seriously talking" to AMD about potentially buying the CPU and GPU chipmaker, according to Fudzilla. It is unclear if the software giant will reach a deal to acquire the company.

The news site added that Intel (INTC) - Get Report might also be interested in acquiring AMD.

In late June KitGuru reported that Microsoft was interested in acquiring AMD, saying the software company approached the chipmaker "several months" ago.

Earlier today analyst firm Bernsteinupgraded AMD to "market perform" from "underperform."

About 27 million shares are AMD were traded by 3:37 p.m. Friday, above the company's average trading volume of about 16.1 million shares a day.

TheStreet Ratings team rates ADVANCED MICRO DEVICES as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate ADVANCED MICRO DEVICES (AMD) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."

Highlights from the analysis by TheStreet Ratings Team goes as follows: