Qorvo Soars 7% After Hours As Activist Investor Starboard Reportedly Takes Stake In Semiconductor Company

Activist investor Starboard Value LP has reportedly acquired a 7.7% stake worth approximately $500 million in Qorvo Inc. QRVO on Thursday, targeting the struggling semiconductor manufacturer for potential operational changes.

What Happened: The stake, led by Starboard CEO Jeff Smith, comes as Qorvo faces mounting challenges in the radio frequency chip market, reported the Wall Street Journal, citing sources.

The Greensboro, N.C.-based company’s shares have declined nearly 28% over the past year amid intensifying competition from rivals like Broadcom Inc. AVGO and Skyworks Solutions Inc. SWKS.

The investment represents a return to familiar territory for Starboard, which previously held a position in TriQuint Semiconductor before its 2014 merger with RF Micro Devices to form Qorvo. The activist firm has maintained a strong presence in the semiconductor sector, with past investments in NVIDIA Corp. NVDA and Marvell Technology Inc. MRVL.

Qorvo’s recent performance has worried investors, with the company’s shares tumbling after missing Wall Street’s quarterly projections. CFO Grant Brown acknowledged these challenges in October, citing weaker demand for premium smartphones and announcing factory consolidation efforts to improve profitability.

Qorvo did not immediately respond to Benzinga's request for comment.

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Why It Matters: The chip maker, currently valued at approximately $7 billion, has struggled to maintain its market position as consumers shift toward entry-level Android devices. Wall Street analysts maintain a consensus price target of $97.65, though recent assessments from Goldman Sachs, Mizuho, and Loop Capital suggest more modest expectations with an average target of $77.

Starboard’s investment in Qorvo adds to its recent string of activist positions, including stakes in Pfizer Inc. PFE, Kenvue Inc. KVUE, and Riot Platforms Inc. RIOT.

Price Action: Qorvo surged 7.08% in after-hours trading to $78.80 on Thursday. The stock closed at $73.59, down 0.77% on the regular trading session, and has fallen 27.43% over the past year, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.