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Last month Intel sold its money-losing mobile chip business for $600 million.
Perhaps most critically, traditional phone and mobile chip companies have expertise in making phones that work.
Behind Mr. Huang's showmanship and bold plans is the Tegra 2, the company's latest mobile chip.
In October, Intel, Advanced Micro's competitor, released a similarly priced mobile chip, the 933-megahertz mobile Celeron.
During the second quarter, A.M.D. overhauled its mobile chip lineup, giving investors hope that its competitive position could improve.
Shipments of mobile chip sets were also strong, pointing to a recovery in the mobile phone market.
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Intel also is expected to introduce new mobile chips for laptop computers on Monday.
The mobile chips are smaller, so there would be 1,600 of them in such a system.
Advanced Micro introduced the mobile chips at competitive prices, an indication that a price war may be brewing between Advanced Micro and Intel in mobile chips, similar to the one under way in desktop microprocessors.
Mobile chips "are coming up, and appear to have a lower power profile, but they are consuming more," he said.
In addition to incorporating the mobile chips, building the computers required innovations in software, data storage, and networking.
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