Texas Instruments (TXN) shares plummeted 6.22% in early trading on Thursday, following concerning statements made by a company executive at a Citi conference. The semiconductor giant is facing headwinds related to demand slowdown and increased capital expenditures, raising questions about its near-term performance.

According to the executive, demand for Texas Instruments' products slowed down after April or did not grow sequentially as usual. This slowdown was attributed to potential pull-ins around Liberation Day, which may have front-loaded some orders. The company experienced strong "aging orders" from January to April, with April being particularly robust. However, the duration of digesting these April pull-ins remains unclear, creating uncertainty about the company's third-quarter performance and potential implications for the fourth quarter.

Adding to investor concerns, the executive noted that recent free cash flow has been depressed by higher capital expenditures. While the company continues to execute well on its capex expansion plans, this has led to a slower pace of share buybacks. Texas Instruments expects its free cash flow to improve in the coming years as capex subsides, but the near-term pressure on financial metrics appears to be weighing heavily on investor sentiment. The combination of demand uncertainties and capital allocation priorities seems to be driving the significant decline in Texas Instruments' stock price during the trading session.