"My gut feeling is that Duron is going to be comparable" in performance to a Celeron, Mercury Research's McCarron said.

CNN: AMD's low-cost Duron chip takes aim at Celeron

The Duron also includes a larger on-chip memory cache than the K6-2, and AMD's Enhanced 3DNow instructions, designed to boost multimedia performance.

CNN: AMD's low-cost Duron chip takes aim at Celeron

Later this year or early next year, Acer Laboratories and Silicon Integrated Systems will also launch chipsets that work with Duron, he said.

CNN: AMD's low-cost Duron chip takes aim at Celeron