Shares of Texas Instruments (TXN) plummeted 6.87% during Tuesday's trading session, significantly underperforming both the broader market and its competitors in the semiconductor industry. The sharp decline comes as analysts raise concerns about the company's long-term growth prospects and profitability metrics.

Recent analysis highlights several key issues facing Texas Instruments. The company's long-term revenue growth has been disappointing, with a sluggish 1.7% annualized increase over the past five years. Additionally, Texas Instruments has seen its operating margin shrink by 5.8 percentage points during the same period, raising questions about its expense management and ability to leverage economies of scale. Perhaps most concerning is the substantial 28.4 percentage point drop in free cash flow margin, which could indicate the business is becoming more capital-intensive.

The semiconductor industry is known for its cyclical nature, with periods of high growth often followed by contractions. However, Texas Instruments' recent performance has left it trading 33.75% below its 52-week high, achieved in November. As investors reassess the company's valuation in light of these challenges, some analysts suggest exploring alternative investment opportunities within the semiconductor sector that may offer better growth potential and financial stability.