Texas Instruments stock drops 7.6% as semiconductor selloff deepens

Texas Instruments (TXN) shares plunged 7.6% to $287.85 during trading, driven by a broad semiconductor selloff triggered by a Democratic sweep in the U.S. midterm elections, which raised fears of stricter regulations on data centers and AI infrastructure. The selloff was amplified by Qualcomm's weak fourth-quarter smartphone chip revenue forecast, which missed Wall Street expectations and triggered cascading losses across the sector. The PHLX Semiconductor Index recorded one of its steepest declines in over a year, while insider sales of about 28,000 shares worth over $8 million and a $2 billion bond issuance added to bearish sentiment. The broader market also struggled, with the Nasdaq falling over 5%, the S&P 500 down 3.6%, and the Dow down 2.5%, erasing post-election gains. The selloff was sector-specific, hitting semiconductor and AI stocks hardest while financial and consumer stocks showed relative resilience, suggesting deliberate portfolio rebalancing rather than panic selling.