AMD will next week introduce its long-awaited Athlon 64 processor, the first 64bit chip for mainstream Windows-based desktops and laptop computers.

Early tests by IT Week Labs suggest that the Athlon 64 easily outperforms Intel's current Pentium 4 desktop processors when running 32bit software. This could make AMD's platform an attractive option for companies with demanding client-side applications.

The Athlon 64 is based on the same technology as AMD's Opteron family of 64bit workstation and server chips, but is designed for single-processor mainstream PCs. It allows firms to continue running 32bit software such as Windows and Office, with the option of moving later to a 64bit operating system and applications.

AMD will unveil a version of the Athlon 64 for desktop systems, another for laptops, and a third version, Athlon 64 FX, for gamers and computer enthusiasts. The first chips will ship at 2GHz, although AMD will continue to brand chips according to their benchmark performance level rather than clock speed.

AMD hinted that the Athlon 64 may cost little more than current Athlon XP chips, which could result in desktops that are competitively priced compared with Pentium 4 systems.

However, AMD may find that having an impressive product offers no guarantee that it will crack the lucrative corporate desktop market. Businesses are simply not looking for the future-proof 64bit systems that AMD is pushing, according to Annette Jump of analyst firm Gartner. "The stable image technology and total cost of ownership approach that Intel has been taking recently is more appropriate for large companies," she said.

AMD also faces the challenge of convincing PC makers to use its technology. HP is Intel's technology partner on the rival Itanium 64bit architecture. Dell is also an Intel-only vendor. Fujitsu-Siemens said it would use the Athlon 64, but at present only plans to offer it in consumer desktop systems. "AMD has not signed up any big vendors as far as I know. Unless this happens, it can't hope to get into the corporate market," said Jump.

Another question mark hangs over 64bit support in Windows. Microsoft already ships a 64bit version of Windows XP for Intel's Itanium family and has said it will support the AMD64 architecture, but has not said when. However, Athlon 64 buyers will still be able to run current versions of Windows; and Linux vendors such as Red Hat and Suse already offer 64bit distributions for AMD's platform.