By Nauman Khan
Publication Date: 2026-01-15 12:15:00
This article first appeared on GuruFocus.
Broadcom (NASDAQ:AVGO) shares slid about 5% on Wednesday after a report said Chinese authorities have told local companies to stop using certain U.S. and Israeli cybersecurity software over national security concerns, according to a Reuters report.
The directive is said to affect products from around a dozen foreign firms, including VMware, which is owned by Broadcom, as well as software from Palo Alto Networks (NASDAQ:PANW) and Fortinet (NASDAQ:FTNT).
Reuters said it could not determine how many Chinese companies received the notice, which people familiar with the matter said was issued in recent days. The concerns are linked to fears that foreign software could collect sensitive data and transmit it outside China.
Check Point said it has not received any official notice and is not aware of restrictions on its China operations, adding that it continues to support customers in the region. Broadcom, Palo Alto Networks and…
