Texas Instruments (TXN) saw its stock plummet by 5.01% in Wednesday's trading session, marking a significant downturn for the semiconductor giant. The sharp decline comes as the company faces both company-specific challenges and broader industry headwinds.

The immediate catalyst for Texas Instruments' stock drop appears to be a bearish move from Wall Street. BofA Global Research cut its price objective for Texas Instruments from $220 to $176, signaling reduced confidence in the company's near-term prospects. This downgrade likely prompted investors to reassess their positions, contributing to the sell-off.

However, Texas Instruments' troubles are not isolated. The entire semiconductor sector is grappling with multiple challenges. New US restrictions on chip sales to China, particularly affecting companies like Nvidia, have sent shockwaves through the industry. Additionally, ASML Holding, a key supplier of chip-making equipment, reported lower-than-expected orders and expressed uncertainty about the impact of recent tariff announcements. These sector-wide issues have led to a broader slump in chip stocks, with companies like AMD, Nvidia, Broadcom, and Micron all experiencing significant declines. The combination of company-specific concerns and industry-wide pressures has created a perfect storm for Texas Instruments, resulting in today's substantial stock price decrease.