Dan Loeb at 2014 WEF in Davos, Switzerland.
Justin Solomon | CNBC
Third Point’s Dan Loeb has taken a passive stake in chipmaker AMD, sources instructed CNBC’s Scott Wapner.
The hedge fund supervisor took the wager when AMD shares struggled, in accordance with sources. AMD shares have underperformed the leisure of the sphere over the final 365 days, down more than 30% as the PHLX Semiconductor Index declined 14%.
The stock has bounced abet this yr by 21% as China opened up its economic system and the general stock market has rebounded.
AMD
AMD these days reported fourth quarter earnings that exceeded Wall Avenue expectations, nevertheless guided for a 10% decline in yr-over-yr sales in the scorching quarter.
The semiconductor sector has been grappling with decrease user inquire of of for performed electronics and gluts of parts wanted to earn PCs and servers.
Loeb is no longer any stranger to the chip industry. He previously owned Intel, AMD’s main competitor, pushing the firm to explore “strategic that you just would reflect of choices” after the chipmaker lost market portion to TSMC.
Intel reported a disastrous quarter in January that integrated a stale 2023 outlook. The firm said it expects a 40% yr-over-yr decline in sales in the March quarter.
