Challenging Intel

Trying to seize a rare moment of vulnerability, IBM, AMD, and Cyrix are all racing to stay ahead of Intel in the low-cost chip market through partnerships and new technologies. And Wall Street seems to be cheering them on.

IBM investing big in AMD Advanced Micro Devices is apparently receiving a major investment from IBM and may get a new CEO to replace Jerry Sanders, analysts say. Cyrix chip aimed at PCs under $500 National Semiconductor's Cyrix subsidiary is developing a complete system on a chip for computers less than $500 due next year. Intel rivals gain on Wall Street AMD and National Semiconductor see their stock jump as investors view them as well positioned against Intel in the low-cost chip market.