[citation][nom]ares1214[/nom]No offense, but that is the dumbest thing ive heard in quite some time. AMD is their competition, if they buy them up, theres no more competition, and intel is the only cpu manufacturer, AKA, MONOPOLY. Then the can charge whatever they want for anything.[/citation]
Well, what you wrote was pretty stupid too, but you'll have to try harder to reach his level.
AMD going away wouldn't change prices as much as people think. The problem Intel would have is keeping their fabs running, and if they overcharged, people wouldn't buy PCs as often. Microsoft is a monopoly, but even they can't charge what they want, because if they do, they'll sell fewer copies. For Intel, it would be far worse to overcharge, because then their fabs would not be running full out, and that's a waste of money.
If overcharging made people hold onto a PC for a year or two longer than they otherwise would, it would hurt Intel dramatically. Let's be honest, PCs from 2003 work fine for what most people need to do (I am typing this on a Tualatin Pentium III-S at 1.575 GHz, and it is still a very usable computer), so that's also a consideration for prices now, and even without AMD.
Also, don't forget Centaur (part of VIA). They make very interesting processors, and they'd also be around if AMD folded. IBM might decide to enter the x86 race too, if they still have the license. Intel would be scared to death of IBM, which has technology and talent far exceeding AMD.
Still, I think AMD folding would be a bad thing, of course, especially if they brought ATI down with them.