Advanced Micro Devices Inc (AMD)

[out to make money]

Actually the point about AMD being vulnerable to a price war is wrong. If you consider what they have done in marketing terms, they have moved out of the high volume mass market and moved into a premium priced niche markets, making them less vulnerable to a price war.

If AMD can be profitable in these niches(Servers, Extream Gameing), without producing volume, any additional production volume for he mass market(AMD64)will serve to absorb overhead.

They must though continue to have the premium product, to remain profitable. Opteron is key.