Activist Investor Starboard Value Takes Aim at Qorvo
A Bold Move to Revitalize the Chipmaker
Starboard Value, a renowned activist investor, has acquired a significant 7.7% stake in Qorvo, a leading chipmaker, as revealed in a recent filing. This move is expected to breathe new life into the company’s struggling share price, which has been impacted by intense competition and slowing orders for its smartphone chips.
Qorvo’s Struggles
The Apple supplier has been facing stiff headwinds, particularly in the smartphone market. Consumers are increasingly opting for entry-tier smartphones, while larger rivals like Broadcom and Qualcomm are benefiting from a recovery in the Chinese smartphone market. This shift has led Qorvo to forecast a 16% drop in third-quarter revenue, according to data compiled by LSEG.
A Call to Action
Starboard Value, led by Jeffrey Smith, has a reputation for driving change at companies like Pfizer and Salesforce. With a stake worth over $500 million, the hedge fund is poised to push for significant improvements at Qorvo. The company’s shares have underperformed its peers, plummeting over 37% last year, partly due to a softer economy and slower adoption of artificial intelligence.
A New Chapter for Qorvo
The removal of Qorvo from the benchmark S&P 500 index in December has added to the firm’s woes. However, with Starboard Value on board, the chipmaker may finally get the boost it needs to revitalize its business. As Qorvo prepares to report its third-quarter earnings, all eyes will be on the company’s ability to turn its fortunes around.
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