((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Update of share movements, addition of context elements in paragraphs 4 to 8)
Starboard Value has acquired a 7.7% stake in Qorvo QRVO.O , the chipmaker revealed in a filing Friday, as the activist investor seeks to boost the company’s weak stock price.
The company’s shares rose more than 8% in pre-market trading.
Apple supplier AAPL.O faces stiff competition and slowing orders for its smartphone chips as consumers shift to entry-level smartphones while larger rivals such as Broadcom AVGO. O and Qualcomm QCOM.O benefit from a recovery in the Chinese smartphone market.
In October, Qorvo said the discontinuation of mid-range 5G Android smartphones will impact its revenue in the second half of fiscal 2025. The company is expected to report a 16% drop in revenue business in the third quarter, according to data compiled by LSEG.
Starboard’s stake in Qorvo is worth more than $500 million, as of the stock’s latest closing price on Thursday.
The hedge fund led by Jeffrey Smith is one of the world’s most prominent activist investors and has pushed for changes at companies such as Pfizer
-PFE.N
et Salesforce
CRM.N
.
Qorvo shares have fallen more than 37% in the past year, underperforming its peers in part due to a weaker economy and slower adoption of artificial intelligence, which has been a major growth driver for many chipmakers.
To make matters worse, the company was removed from the benchmark S&P 500 in December last year.
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