AMD's shares leap 11 percent after Chartered deal

* Shares up more than 11 percent

* Analysts cite ATIC deal to buy Chartered

LOS ANGELES, Sept 8 (Reuters) - Shares of Advanced Micro Devices (AMD.N) jumped more than 11 percent after its chip foundry partner, Abu Dhabi's ATIC, offered to buy Singapore's Chartered Semiconductor for $1.8 billion [ID:nT37096].

The move suggested that AMD's just-established contract chip making venture with ATIC, called Globalfoundries, might get the customers and technology needed to compete against global leaders like Taiwan's TSMC (2330.TW), analysts said.

Barclays Capital upgraded AMD stock to overweight from equal-weight, and raised its price target to $7.00 from $4.00, also citing improvement in overall personal computer demand.

"We view the transaction as a strategic positive for Global Foundries, which will acquire customer relationships and manufacturing capabilities in both 8-inch and 12-inch fabrication," Barclays analyst Tim Luke wrote.

"The ATIC/Chartered Semiconductor transaction is a net positive for AMD as it could likely help moderate loss levels at AMD consolidated, as Global Foundries broadens its customer base over time."

AMD's shares rose as much as 11.3 percent to $5.04, and were up 10.6 percent at $5.01 in afternoon trading. (Reporting by Edwin Chan; editing by Ted Kerr)