It's not every day you see one company challenge another to a duel, but that's just what AMD (NYSE:AMD) did today: It told Intel (NASDAQ:INTC) in a number of prominent newspapers that it wanted to throw down.
While I have images in my head of AMD CEO Hector Ruiz and Intel CEO Paul Otellini drawing pistols at dawn at 20 paces, that's not quite what AMD has in mind. Instead, AMD is challenging Intel to pit its best dual-core processor against AMD's in a battle for server supremacy.
It's an interesting marketing tactic for the upstart chip maker. My Foolish colleague Tim Beyers has done an excellent job of following the ongoing battle between AMD and Intel over the past year or so. While AMD has made headway against Intel in a number of markets, it's struggled in the server sector. AMD lost ground in this market to Intel's recent launch of its dual-core processors, which wooed Motley Fool Stock Advisor selection Dell's (NASDAQ:DELL) servers away from AMD chips. Now AMD is out to prove that its own dual-core chips, though held back by delays, are second to none.
It would be very surprising to see Intel take up AMD's challenge, much less recognize it. If Intel wins, well, it's already got the dominant position in the market. If it loses, AMD gets a huge and much-needed publicity boost.
Investors can safely ignore all this hoopla. Where these two companies are concerned, building a better business and gaining more sales are the most important contests. Intel already has tremendous strength, and AMD is showing signs that it's heading in the right direction. This duel won't be a defining moment for its business in the long term.
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Nathan Parmelee has no financial interest in any of the companies mentioned. The Motley Fool has an ironclad disclosure policy.
