Paddy, change is not easy but I suspect AMD/ATI will make the best of it in time. Folks around prefer AMD chips when building their Game Boxes, so I don't see AMD going away anytime soon. I know someone in Sunnyvale ca. that has worked for them from the beginning. They seem to think that AMD has a bright future ahead of them. If you just think about the volume of chips that will go into the OLPC project and the subsequent projects that will follow, the numbers are huge.
AMD stepped up when intel just scoffed at the project, and for that insight alone I would buy their stock. AMD & Lenux will do just fine in future markets. There is a larger market for low end gadgets rather than high end, and as of this year you can buy a AMD Lenux laptop or desktop right off the shelf from major manufacturers.
I'll have one here in my XO1 in a few weeks, built with a AMD Geode LX-700 433Mhz .13 micron chip, I let you know how it goes!!