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Qorvo (NASDAQ:QRVO) just found itself in the crosshairs of activist investor Starboard Value, which has quietly built a 7.7% stake in the struggling chipmaker. Wall Street took noticeQorvo surged to over $84 per share as investors bet on a shake-up. The firm, led by Jeff Smith, has a reputation for forcing strategic overhauls, and Qorvo is ripe for one. After a brutal year of missed earnings and growing competition from Broadcom and Qualcomm, the company needs to rein in costs and revamp operations. Expect pressure for boardroom changes, potential asset sales, or even a restructuring play.
Adding to Qorvo's turbulent week, onsemi (NASDAQ:ON) just bought out its silicon carbide (SiC) junction field-effect transistor (JFET) businessincluding the United Silicon Carbide subsidiaryfor $115 million in cash. The deal expands onsemi's EliteSiC portfolio, giving it a bigger footprint in AI data centers and EV power systems. By integrating SiC JFETs, onsemi is streamlining battery disconnect units and enhancing energy efficiency, locking in its position as a key player in next-gen semiconductor tech. While onsemi powers ahead, Qorvo is left to regroup and figure out its next move.
The takeaway? Qorvo is under fire, and change is comingwhether it likes it or not. With Starboard now pulling the strings, expect turbulence, but also potential upside if management executes a turnaround. Meanwhile, onsemi's SiC expansion keeps it on the offensive in the high-stakes chip war. Investors should stay locked inbig moves are coming.
This article first appeared on GuruFocus.