The battle of 64-bit computer chips between chipmakers Intel (Nasdaq: INTC - news) and Advanced Micro Devices (NYSE: AMD - news) (AMD) will be remarkably similar to the 32-bit chip wars of the past between the two, with Intel as the putative Goliath and AMD as David, gambling on knocking off the giant with a small but potentially lethal 64-bit slingshot. AMD is betting that future consumer PC applications will grow increasingly sophisticated and eventually will require 64-bit chips, which so far have been used almost exclusively by large corporations and research institutions for data-intensive applications.

There are no current 64-bit applications for consumer use, but AMD's secret weapon is flexibility. The company's 64-bit chips also will run 32-bit applications effectively -- unlike Intel's -- theoretically making it easier and cheaper for companies to switch to AMD's 64-bit chips than to Intel's vaunted Itanium. "Intel's approach ignores the industry's multibillion-dollar investment in 32-bit architecture," AMD spokesperson Cathy Abbinanti told NewsFactor. "They're forcing developers to rewrite all their code. We don't believe they have a technology that addresses the market's needs."