PC demand is dragging, business IT spending is not holding up as hoped, and the impending Windows 8 release is unlikely to catalyze significant market growth. These negative cyclical trends in the PC market have already caused Dow semiconductor powerhouse Intel (NASDAQ:INTC) to reduce its Q3 guidance, and ultimately it looks like this longstanding industry leader will have to gain ground in new core areas if it hopes to remain relevant.

One such area is servers, a bread-and-butter business for Intel, with new competition coming from HP (NYSE:HPQ) -- another company desperately trying to diversify growth prospects amid the flatlined PC market.

Intel also has its sights set on the mobile arena, but gaining traction in this market will be a long road. The company touts some recent design wins, partnering with France Telecom (NYSE:ORAN) and producing handset components for Motorola, but these are single bullet points in the outline of a broader market.

Intel is currently valued at less than 10 times earnings, with almost a 4% dividend. As a company that's always been on the cutting edge of technology and has historically enjoyed the industry's largest market share, it is tempting to many investors right now. However, Intel is in a precarious situation for the long term if it doesn't find new avenues for growth, which is why The Motley Fool has created a premium research report covering all of the key topics that investors must understand before deciding how to invest in the chip giant. Better yet, for an entire year, you'll continue to receive updates and guidance as Intel-related news breaks. Click here now to learn more.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.