Activist investor Starboard Value takes 7.7per cent stake in chipmaker Qorvo

Starboard Value has built a 7.7per cent stake in Qorvo, the chipmaker revealed in a filing on Friday, as the activist investor looks to boost the company's weak share price.

Shares of the company rose over 8per cent in premarket trading.

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The Apple supplier has been grappling with stiff competition and slowing orders for its smartphone chips as consumers gravitate towards entry-tier smartphones, while larger rivals such as Broadcom and Qualcomm benefit from a recovery in the Chinese smartphone market.

In October, Qorvo said the shift away from mid-tier 5G Android smartphones will impact its revenue in the second half of fiscal 2025. The company is expected to report a 16per cent drop in third-quarter revenue, as per data compiled by LSEG.

Starboard's stake in Qorvo is worth more than US$500 million, as of the stock's last closing price on Thursday.

The Jeffrey Smith-led hedge fund is one of the world's most prominent activist investors and has pushed for changes at firms including Pfizer and Salesforce.

Qorvo's shares fell over 37per cent last year, underperforming its peers, partly due to a softer economy and a slower adoption of artificial intelligence, which has been a major driver of growth for many chipmakers.

Adding to the firm's woes, it was removed from the benchmark S&P 500 index in December last year.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Krishna Chandra Eluri)