NEW YORK ( TheStreet) -- It always amazes me to see how sometimes no matter what a company does, Wall Street can never be pleased. It is as if there is an unspoken, separate set of standards applied to some companies that rarely (if ever) matters to others -- remarkably, even when they are in the same sector.Fairly or unfairly, this is where chip giant Texas Instruments ( TXN) finds itself. Favoritism is being shown by analysts to names such as Qualcomm ( QCOM) and ARM Holdings ( ARMH) -- particularly the latter, where its P/E of 65 suggests that the sky's the limit. But for Texas Instruments, at $32 the stock is deemed expensive, even though it trades at one-fourth the multiple of ARM and two points below Qualcomm.
I think that comment should not have gone unnoticed by investors -- although the current trading activity suggests that it has. The company is now showing signs of growth, evident in a 13% increase in orders, which results in an ensuing growth in backlog -- always a great problem for companies to have. There is no denying that competition in this space is going to continue to be fierce. We have not even mentioned Nvidia ( NVDA) and a rebounding Atmel ( AMTL). That said, it is also undeniable that Texas Instruments appears set to be aggressive in not only seizing a good portion of the market, but in growing what it already has -- aided by the slight return in corporate IT expenditures and industrial business. Wall Street should start appreciating that the company is doing a better-than-adequate job, no just maintaining its margins, but standing out from its rivals with state-of-the-art lower-cost manufacturing in place. That will further support expectations of growing EPS well into the future.