Intel is still the king of the processor market right now, and there is nothing AMD can do right now that will change that overnight. but you do have to admit that Intel does face some major challenges at the moment that could potentially lead to some significant market share erosion over time:
1. Losing the crucial first battle in the 64-bit war, and having the Opteron/A64 platform become the platform that the first widely available 64-bit Microsoft OS is written for.
2. Having a big gap in their server chip line between the Xeon (fine for 2-way servers, but unable to effectively scale to 4-and 8-way implementations due to their lack of an on-die memory controller) and the Itanium (good for big iron, but can't run 32-bit apps effectively), which gives AMD an opportunity to establish a beachhead corporate world with servers based on their 400 and 800 series Opterons before Intel gets out their server chips with on-die controllers. If there is a significant wait for the new Intel chips, and AMD is the only game in town in that market, even Dell may be forced by customer demand to start offering Operton servers.
3. Having to give up on their reliance on high clock speeds to sell their Pentium 4 and Celeron chips because of thermal concerns and switch to Pentium-M derived desktop chip that is rated with a model number. After training their customers to look at nothing but clock speed for so long, having to re-educate the public about computer performance could be a challenge. Even worse, by spending a lot of money and effort dispelling the gigahertz myth to sell their new Pentium-M derived desktop processors, Intel winds up in the end with a customer that is a lot more receptive to buying an Athlon based system because they will have removed the biggest current customer objection to AMD processors - the lower clock speeds. In the process of trying to sell their next generation processor, they will be doing the hard work for AMD (and Apple for that matter).
4. The nVidia 6000 series graphics cards and their hardware video encoding unit. Once this finally becomes functional and gets proper driver support, and if the unit does actually boost video encoding speed significantly, then it has the potential to remove the last major performance advantage the Pentium 4 porcessor hold over the Athlons. If this technology makes it all the way down into the value nVidia cards (6200?), it could really level the playing field for AMD. If it remains only in the 6800 cards, then it may not have a major effect on things.
5. The fragility and other mechanical issues related to their new socket design. It is a minor and probably fixable issue, but isn't a good thing to have to deal with in light of their other challenges.
None of these issues alone can hurt Intel that much, but taken together they could result in AMD nibbling away a bigger piece of the pie in the next year if they play their cards right.