AMD is the only direct competition to Intel. While we normally think that Intel sets the standards, AMD has been years ahead of Intel in certain innovations. AMD introduced the 64 bit extensions used when server or Vista computers have more than 4G of memory. Each Intel core communicates through the external “Northbridge” chip on the mainboard that controls memory and fast I/O devices. AMD created a better design where the CPU chip controls the memory directly and multiple cores in a chip can communicate with each other directly. The Nehalem family of Intel chips in late 2008 will adopt a version of this architecture that AMD has been using already for two years.
Throughout most of modern PC history, an AMD chip has been faster and/or cheaper than the corresponding Intel chip. It had to have some advantage to overcome the dominant industry brand name.
However, during the period that AMD had superior technology for Server and high end desktop systems, Intel had developed a more sophisticated laptop chip. In the "Core 2" generation Intel upgraded that laptop technology for use in desktop and server systems. Today the Intel chips are a little faster, cooler, and use a bit less electric power than AMD chips. Intel also was first to move to each new generation of chip fabrication. Intel made the transition from 65 nanometer to 45 nanometer (smaller, faster, cooler) a year before AMD, and even when AMD starts to build 45 nanometer CPUs, Intel will still have an advantage in making chips out of a material with better insulation properties.
AMD still makes perfectly good chips, and at specific prices theirs may be the best buy. However, they no longer dazzle us with remarkable engineering. It is not clear if they can make any money building the chips they can make and selling them in the price window that Intel allows. So while the author would be happy to buy a computer with an AMD processor, he is not sure that he would buy stock in the company.