Intel Corp (NSDQ: INTC) derives a substantial part of its revenue from its core business of supplying next-generation microprocessors for computing on laptops, tablets, servers, and storage devices. However, the company sees key growth opportunities in supplying processors for the world’s rapidly growing smartphone and mobile computing markets. As the chart below makes clear, this company faces outsized earnings prospects.

Intel has a worldwide staff of approximately 103,000 employees, roughly half based internationally and the other half in the US. Intel’s stock has long been viewed as a core blue chip holding. Long-term Intel shareholders have been handsomely rewarded by share appreciation and regular quarterly dividend payouts.

Intel’s business goals include maintaining and increasing market share in its microprocessors business and continuing to lead research and development (R&D) in semiconductor technology with newer, faster, more energy efficient chips. The company’s latest strategic foray is to expand its applications across growth technologies, such as mobile computing.

Chip design and manufacturing involves sustained investments in engineering and R&D, as well as massive capital expenditures to set-up manufacturing plants. The company’s semiconductor segment was traditionally linked to intrinsic business purchase cycles and seasonality, but this trend is now being replaced by Intel’s expansion into more consumer-centric devices such as smartphones and mobile computing.

In its second quarter of fiscal 2012, Intel made a splash with its Ultrabook line and chips for tablets and smartphones, in addition to solid execution in its data center segment.

For its second quarter ending June 30, Intel reported strong results (see chart, below).

Source: Intel

Intel has consistently paid and increased its dividends, from $0.40 cents per share in 2006 to $0.84 cents annualized in 2012 (based on its last four quarterly dividend payments of $0.21 per share). Intel last raised dividends in the second half of 2011, from $0.18 to $0.21, and has held dividends at that level.

With Intel shares hovering at around 23.22 as of September 17, Intel delivers a 3.9 percent dividend yield, with a market capitalization of $116.9 billion (roughly 2.6 times book value).

Demand for Intel’s products is driven by economic growth and pricing decreases. Prices of computing devices are getting more affordable because of innovations in semiconductor and components technology, and higher volume production.

Intel has consistently stayed on the cutting edge of its sector and steadily expanded revenue and profits. Intel has also benefited from significant growth in Asia and other emerging markets, and their massive appetite for computers, laptops, servers and mobile products. The company’s gains in emerging markets, however, are tempered by revenue decreases in mature markets, especially in Europe, which saw a 2 percent drop in revenue contribution in the second quarter of 2012.

Intel appears to be the unassailable market leader, as it gains in markets within the Apple (NSDQ: AAPL) ecosystem. Moreover, Intel has a clean balance sheet. The company has aggressively bought back shares and is increasing annual dividends.

New smartphone products and “Wow!” technology releases seem to come out monthly. Intel makes chips to improve the performance for all of these products. The stock is trading at a 10x price-to-earnings multiple, a good value considering its stellar growth prospects. I strongly recommend buying Intel up to 26.

Disclosure: I’m personally long on Intel.

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Todd Johnson publishes Dividend Lab, a web site focused on income investing.