Operator
We go next to Timothy Arcuri, Cowen and Company
Timothy Arcuri, Cowen and Company
Thanks a lot. Just a question again on gross margin and what the possible headroom is. I guess if you look at the embedded business you are up to 17% but, if you look at some of the well run tiers in that space, they are doing sort of mid-20’s. So maybe ask kind of a little bit different way, is there any reason why you cannot get the embedded margins up to the mid-20’s.
Kevin March, SVP & Chief Financial Officer
No. There is no reason why we cannot do that.
Dave Pahl VP, Head of Investor Relations
Yes we made good progress obviously, Tim, we still have work to do but we believe that we can get into that range with revenue growth and that is what we are planning to do. They got a good start. They have nine quarters in a row of year-on-year growth and are making progress towards moving operating margin higher. Do you have follow on?
Timothy Arcuri, Cowen and Company
I do yes. Relative to the inventory, certainly some of it are structural as you indicated, but, is any of the rise in inventory related to your perception that June could be, sort of a little bit better than seasonal quarter?
Kevin March, SVP & Chief Financial Officer
Tim that is probably too early for us to call the entire second quarter. Right now we are focused on first quarter. The inventory that we got staged today is designed to support our first quarter needs. And then as we adjust our factory loadings in the first quarter, that inventory that we build will be designed to deal with our second quarter needs. And as I mentioned earlier, we expect we will be ramping up our factories as we go through first quarter in support of second quarter and when we get to the end of the quarter we will find out how much inventory we will hold at that point in time.
Dave Pahl VP, Head of Investor Relations
Thank you Tim. Operator we’ve got time for on more caller.
Operator
We will go with the last question with Doug Freedman, RBC Capital Markets
Doug Freedman, RBC Capital Markets
Hi guys thank very much for taking my question. I guess if I could dig deep into some of the results that you have reported and maybe some of the outlooks that you might have by sort of key markets out there. I think that investors are interested to hear what you are seeing in the PC and server power markets as well as maybe the disk drive markets and if you could offer some color on what you are seeing in the communications market as well? I think those are maybe not that overly material to the TI story but they to investors in
general.
Dave Pahl VP, Head of Investor Relations
Okay Doug, well I can — let me share some market trends that we have seen, I think the that may address some of those issues, maybe not down at the level that you are quite asking. So, I think you were talking about PCs and those that fall in to our personal electronics products, those were on a year-on-year basis. They were up despite the declines that Kevin had mentioned earlier on legacy wireless and that growth was led by mobile phones. If you look at industrial and I want to point out, when we talk about industrial, we have been very intentional about how to measure that. And it is different than when investors talk about the industrial market. And the sectors, we got a dozen sectors that make up industrial and they include things like factory automation and control, medical, healthcare fitness, building automation, smart grid, motor drives, displays.
