what does NM mean?

smaller transistors mean less heat dissipation which generally results in longer CPU life, faster clock speeds, and less power consumption.
 
Unless you're Intel.

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What he means by "Unless you're Intel" is that Intel's migration from 130nm (Northwood) to 90nm (Prescott) resulted in a cpu producing significantly more heat than its predecessor. Of course, they've increased the number of components in addition to the shrink in transistor size. Theoretically, if it's only a die-shrink, it should have produced a better cpu.
 
Guess he missed the Pentium M.

Xeon

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