Broadcom stock slides after report China told firms to drop VMware, other foreign cyber tools

Broadcom stock slides after report China told firms to drop VMware, other foreign cyber tools

By Khadija Saeed
Publication Date: 2026-01-14 15:46:00

New York, January 14, 2026, 10:37 EST — Regular session.

  • Broadcom shares dip as investors digest reports of China restricting foreign cybersecurity software, including VMware, which Broadcom owns
  • Chip and cyber stocks gain on the headline, while the broader tech sector slips lower
  • A separate SEC filing reveals a $4.5 billion bond issuance alongside upcoming debt redemptions

Broadcom shares dropped 4.1% to $340.03 in early trading Wednesday following a Reuters report that Chinese regulators instructed local firms to halt use of cybersecurity software from about a dozen U.S. and Israeli companies, including VMware, which is owned by Broadcom. (Reuters)

This shift is significant as Broadcom has increasingly focused on software since acquiring VMware, tying the stock more closely to geopolitical tensions whenever China crops up in the news. The report comes amid fresh U.S.-China tech clashes affecting everything from semiconductors to enterprise software. (