Texas Instruments (NYSE:TXN) Continues to Pursue Organic Growth

Knowing it must focus primarily on organic growth, Texas Instruments (NYSE:TXN) has been ramping up its 300mm fab lines.

Gleacher noted, "Texas Instruments hosted a sell-side analyst meeting yesterday at the new 300mm R FAB in Richardson, Texas. The topics of conversation were (unsurprisingly) consistent with the company's past emphasis on ramping its 300mm manufacturing advantages and continued growth in Embedded Processing and Analog...We saw it with our own eyes: The 300mm analog fab is ramping: We do not expect any impact to margins: The company continues to qualify 2-3 products per week on its 300mm fab lines. This equates to 25% of all new products introduced; the remainder (75% of new products) is ramping at other wafer fab locations...New product roadmaps remain robust, as the company clearly realizes it must pursue organic growth in its target markets and cannot simply buy market share."

They maintain a "Buy" rating on Texas Intruments, which closed Wednesday at $32.58, gaining $0.78, or 2.45 percent. Gleacher has a price target of $35 on TI.