They've taken on too much, imo. I think they need to split the company up into a microprocessor unit, a GPU unit and a flash memory unit, essentially reversing their acquisitions for the past decade. A sign of AMD's demise was last year when they dumped their chip manufacturing to offshore Global Foundries company (while still having a 40% minority ownership of the company). AMD's market share has been dropping slowly for years--down to 18.7% last quarter with Intel celebrating it's highest market share in almost 5 years with 80.6%. If AMD disseminates after a bankruptcy, Intel would be king and would make it extremely difficult for any new company to compete with Intel in the microprocessor market. AMD's attempts to compete with Intel in the x86 architecture market has been difficult though not as difficult as competing with their own microprocessor architecture which AMD has tried to off and on over the course of it's existence.
All in all, I hope AMD can reinvent itself and at least survive through this. If AMD were to fall, prices for Intel based computers could rise considerably (which of course includes Macs). I think for the most part Intel is probably happy with things just as they are.
AMD won't die, I don't think. Even if it were trending that way, no one wants them to die - especially Intel.
That being said, I hope they hang by a thread >.>
-j