Shares of Advanced Micro Devices Inc. gained Monday after UBS upgraded the chip maker, citing improvement in personal computer demand.

AMD’s stock jumped 29 cents, or 5 percent, to $6.17 in afternoon trading.

UBS analyst Uche Orji raised the Sunnyvale, Calif.-based company to “Buy” from “Neutral” in a note to investors Monday. He also boosted his price target to $7.50 from $4.50.

Along with signs of a pickup in consumer demand for PCs, Orji said his recent checks give him more confidence that Abu Dhabi-based Advanced Technology Investment Co. is committed to its role in AMD’s spinoff of GlobalFoundries Inc., the company’s manufacturing arm.

He added that AMD appears more focused on turning a profit than grabbing market share with its latest graphics processors.

Given improving PC demand, Orji raised his third-quarter forecast for AMD to a net loss of 33 cents per share. His previous estimate was a loss of 43 cents per share. Analysts polled by Thomson Reuters expect a loss of 42 cents, on average.

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