Advanced Micro Devices was hoping that it's recently launched Bulldozer server processors would pull AMD out of its downward spiral against arch-rival Intel. Bulldozer has a new microstructure, a complete redesign of the original Opteron chip and the first chip to be manufactured with 16 cores. It also represented AMD's best hope of regaining its lost market share.

Unfortunately for AMD, the Bulldozer has failed to impress reviewers who found the Bulldozer architecture a bad fit for desktops. Consumers should stick to older six core AMD CPUs or go with Intel Core i7 wrote PC World in its review of the AMD FX 8150. Can AMD survive this latest setback?

The long and storied rivalry between AMD and Intel are practically a fixture in the computer industry. Like all good rivals they pushed each other to bigger and better products. AMD, founded in 1969 and Intel, launched in 1970 had been pushing each other since the early 1980s when they were both competing to get IBM to pick their microprocessors. IBM went with Intel's x86 microprocessors. AMD replied by developing its own x86 design. AMD hit Intel with an anti-trust suit in 2005. For a time AMD had the upper hand as Intel was rebuked with antitrust regulatory fines by the U.S Federal Trade Commission and Europe.

AMD had hoped that Intel's legal troubles would it get a bigger share of the PC business but it hadn't really gone AMD's way. AMD had the best opportunity to overtake Intel when it released the Athlon processor. It was better than Intel's Pentium III chip and AMD processors would continue to dominate Intel through the introduction of the Athlon 64. Unfortunately, the streak wouldn't last and Intel processors now have better over-all performance. AMD's market share has slid to about 19 percent while Intel has grown to 80 percent.

AMD's troubles weren't relegated to processors. It had bought graphics chip maker ATI for $5.6 billion and then sought to cut expenses by spinning off its chip manufacturing business in a joint venture called Global Foundries. Earlier this month. AMD announced it was laying off 12 percent of its workforce.

AMD is now considering a new strategy to stay relevant in the market. The company is expected to campaign in the smartphone and tablet market. Some analysts believe that AMD may even adopt the ARM chip design that is currently found in many smartphones and tablets.

AMD has promised that it would detail its new strategy in February but whatever it is it needs to do it fast before Intel can race away beyond any hope of AMD catching up.