FUD Zilla claims AMD's 45nm K10.5 Deneb processors will be able to hit 3.2GHz. These chips are expected in the fourth quarter and may help AMD to get a bit more competitive with Intel.
This is at least what some internal data shows and this is possibly enough to match Intel's offerings in Q4 2008.
Intel plans to launch Nehalem, and it will probably work around 3.0GHz or higher, and if this remains the case, AMD's 3.2GHz Deneb can actually fight for the performance crown.
It is likely that Nehalem might win this round, but AMD will be more competitive and at least close to Intel's highest-end offering.