), and reiterates buy.
Analyst David Wu says data points since the second-quarter results in July suggest: 1) overall semiconductor demand has been unseasonably strong, especially in consumer electronics and PCs; 2) major cell-phone handset original equipment manufaturers are ordering components for major a step-up in the second-half build schedule.
Wu now sees TI posting 10 cents pro forma third quarter earnings per share, at the top end of guidance, vs. the 8 cents earnings per share consensus. He upped the 2003 estimate of 33 cents earnings per share on $9.5 billion revenue, to 36 cents earnings per share on $9.55 billion revenue.
Also, Wu raised the 2004 estimate of 80 cents earnings per share to 95 cents on the same revenue estimate of $11.56 billion, based on better gross margin assumptions. He also raised the $25 target to $30.