Using your logic, the one with the biggest wallet will always win. Which is not true! (Of course the one with the biggest wallet already won the big wallet award!)
We have seen many giants fall or fail, Microsoft never came up with an answer to the iPod, you may argue that MS didnt really try that hard, but still I think its a good example.
And finally, there is always a place for No. 2, AMD can be a player, it doesn't have to be No. 1 to remain a player.