AMD set to challenge Intel dominance

AMD's Athlon processor range, released at the beginning of this week, has been given full backing by IBM and Compaq, with both committing to use the chip in their machines.

AMD is the first chipmaker to challenge Intel in the business processor market, with the top of the line model reaching speeds of 650MHz.

GartnerGroup analyst, Joe D'Elia, believes this could transform the market place into a battlefield of innovation. "This takes AMD into the mainstream of corporate desktop and workstations. Intel should be worried - it is getting competition on its home turf and with IBM and Compaq's backing," he said.

D'Elia added that it could also encourage other chipmakers to follow AMD's lead: "If AMD shows that you can compete in the high-end, new players could come in too."

An Intel spokesman argued that the Athlon does not pose a serious threat because in the high-end of the market, customers are not just interested in performance. "AMD's past has historically been in the low-end market and corporate customers look at a company's history and ability to deliver high volumes around the world, which we have," he said.

Doubts have been raised over AMD's ability to supply the processors, but D'Elia argued: "Historically it has shot itself in the foot several times but if AMD can avoid doing it with the Athlon it stands a good chance."