AMD is waving away claims that it plans to pursue the "netbook" category. Instead, the company said it remains committed to a sweet spot it believes resides between standard notebooks and netbooks: the ultra-thin and ultra-light notebook market.

The ultra thin and light market isn't new, as Jon Peddie, president of Jon Peddie Research points out. Sony came out with a Vaio 505G notebook in 1998 that fit the bill. But it had serious shortcomings as well, like a 10-inch screen.

The concept of an ultra-thin and -light notebook limped along until Apple came along and breathed new life into the market, much like it did with the MP3 player and smart phone. The MacBook Air made a notebook the size of a magazine look sexy, and others have followed suit.

This is where AMD (NYSE: AMD) is aiming, currently with its Neo platform, and in the future with upcoming releases codenamed "Geneva" and "Ontario".

As AMD sees it, the problem with netbooks is that the low-cost, low-power systems don't deliver a full PC experience.

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