AMD today introduced the 650MHz AMD Athlon(TM) processor, the world's fastest and highest-performance microprocessor for x86 computer systems. The AMD Athlon family is designed to deliver unprecedented performance for cutting-edge commercial and consumer software applications running on high-end desktop systems, workstations, and servers.
What this means:
AMD may now give Intel more serious competition. AMD's potential to grab higher-end market share has increased - its present success is primarily in the sub-$1000 PC market.
AMD may finally be able to provide multiprocessor capability for servers, something it has lacked, and where Intel is the volume king. (Note: Athlon is "multiprocessing ready"; it still needs the "Poseidon" support chip set - not yet available - to be able to provide true multiprocessing.)
Use of the Alpha bus theoretically provides performance advantages beyond raw CPU speed.
Since the technology is "unproven", there is an inherent risk to its success. If Athlon fails, AMD runs the risk of going down with it.
The more credible the threat of Athlon is, the more likely that Intel will react strongly.