Activist hedge fund manager Dan Loeb takes a passive stake in AMD

Third Point's Dan Loeb has taken a passive involvement successful chipmaker AMD, sources told CNBC's Scott Wapner.

The hedge money manager took the stake erstwhile AMD shares struggled, according to sources. AMD shares person underperformed the remainder of the assemblage implicit the past 12 months, down much than 30% arsenic the Philadelphia Semiconductor Index declined 14%.

The banal has bounced backmost this twelvemonth by 21% arsenic China opened up its system and the wide banal marketplace has rebounded.

AMD precocious reported 4th fourth earnings that exceeded Wall Street expectations for income and profit, but guided analysts to a 10% diminution successful year-over-year income successful the existent quarter.

The semiconductor assemblage has been grappling with little user request for finished electronics and gluts of parts needed to marque PCs and servers.

Loeb is nary alien to the spot industry. He antecedently owned Intel, pushing the institution to research "strategic alternatives" aft the chipmaker mislaid marketplace stock to TSMC.

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