Shares of computer processor maker AMD (NASDAQ:AMD) jumped 6.5% in the afternoon session after Melius Research analysts upgraded the stock, citing improving prospects for the company's artificial intelligence chips.

The increase follows several significant analyst upgrades for AMD stock and favorable insights from the company’s Advancing AI event held last week.

Melius analysts expect more AI-chip sales as demand grows for running AI models and for AMD’s new offerings to attract hyperscaler and sovereign customers.