That could give Intel the time it needs to deliver another punch next year: Nehalem.

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Intel, in its latest quarterly earnings reported better than expected average selling prices (ASPs) for its notebook and server processors, led by a fast ramp up of its new Core product series and Nehalem EX series.

FORBES: Notebook And Server Margins Fatten Up Intel

And while Intel said it will start selling a new processor design, dubbed Nehalem, in the fourth quarter of this year, AMD countered that it will shrink the size of the transistors on its existing server chips by the fourth quarter to match Intel's.

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