AMD's (financial) hope lies in nVidia's GTX 300 series being crap.
Yet as amdfangirl said, the GPU market is dominated by IGPs (evidence of this is Intel having the largest GPU market share).
Best possible case scenario for AMD would be:
1)Phenom II X6 clocked at 3.2 GHz with a 140w TDP launched by March 2010;
2)Then shrink the Phenom II line to 32nm by June 2010 and release 4.0GHz 12MB cache 125w TDP Phenom II X4 995 processor.
3)Have Bulldozer ready for a November/December launch, performing as good as Core i9 and Sandy Bridge mArch.
Globalfoundries *should* be able to begin 32nm production by mid 2010 (best possible case); but the word is AMD hasn't got the designs ready foption 2) to become true.
Then the rumoured PII stepping 3 might get thuban (X6) CPUs up to 3.0 GHz with 140w TDP, but option 1) seems unrealistic, both for the GHz and the release date.
Finally, they've clearly stated Bulldozer will be ready only by 2011, though an ahead-of-schedule lanuch (bug-free, of course) is plausible, and an utter need for AMD. Yet the question is whether it'll compete well against Sandy Bridge or not. Option 3) can come true with some luck.
What is left for AMD till 2011 then?
Offer really cheap solutions with awesome performance, (probably lower PII pricing a bit), bring down TDPs (PII 965 125w is announced; 955 95w TPD too), and SIGN SOME CONTRACTS WITH OEMS!!!! Dell and HP offer nowhere the same AMD PCs than Intel's. Also, "Evergreen" should and must allow them to turn a profit by Q1 2010.