NEW YORK ( TheStreet) -- Semiconductor giant Intel ( INTC) will report second-quarter earnings on Wednesday, July 17. Although it's not ground-breaking news to suggest that the company has fallen out of favor with Wall Street, it still seems that many investors are discounting the progress that Intel has made in the realm of mobile.Although Intel does rely on the PC market for a significant portion of its revenue, the company's mobile advancements, albeit modest, are a step in the right direction. I'm not suggesting that rivals such as ARM Holdings ( ARMH) and Qualcomm ( QCOM) should start worrying about market share. But for investors with patience, Intel can still provide solid gains with each small step. One of these small steps was taken recently when Samsung announced that it had chosen Intel's Clover Trail+ mobile chip processor to power a its Galaxy Tab 3, which is based on Google's ( GOOG) Android platform. Although this would certainly be a great win for Intel, the news was dampened by new rumors that Apple ( AAPL) had decided not to use Intel chips in new versions of its iPhones and iPads.
Given these new ambitions, I believe it's premature to count Intel out. Along those lines, I still believe that Intel's true growth potential will reside in mobile. This is not to discredit management's goals in entertainment. But I don't believe that Intel's pedigree in home theater can rival what Apple and Google are able to do. Plus, when you factor in Microsoft's ( MSFT) Xbox One and Sony's ( SNE) existing dominance in entertainment, Intel's aspirations seem "reaching" -- to put it mildly. With that in mind, I expect management to maintain focus on growing product development and advancing better volumes in its chips business, which should spur Intel's profitability.
Read: 5 Best Surf Schools Though Qualcomm and ARM Holdings may be out of Intel's league at the moment. Intel still has distinct advantages over the likes of NVIDIA ( NVDA) and Advanced Micro Devices ( AMD). Plus, management has positioned Intel to capitalize on emerging markets. And I believe that this is where investors should begin to focus their attention. The emerging markets are where most of the company's growth should be in the next few quarters. This is one of the main reasons that I'm bullish on Intel's core capabilities -- namely in areas like security and the cloud. What Intel needs is more time. The company will eventually recapture its magic and prove that is can increase its margins and outperform expectations. In the meantime, from an investment perspective, I believe that the stock is trading for less than its fair market value, which I have estimated to be right around $32 per share. (Shares were changing hands Tuesday morning at $24.19.) For value investors with patience, the stock is a buy at this level ahead of earnings. At the time of publication, the author was long AAPL. Follow @saintssense This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.