NEW YORK, Jan 15, 2026, 05:43 EST — Premarket
Broadcom Inc (AVGO) shares fell roughly 4.2% to $339.89 in premarket trading Thursday, following reports that China has instructed local companies to halt use of certain foreign cybersecurity software, including VMware, which Broadcom owns. (Jerusalem Post)
This report hits Broadcom’s software business, not just its chip division. It comes quickly too, as U.S.-China tech tensions stretch beyond export controls into the core infrastructure of corporate networks.
Traders are digesting new sell-side reports alongside a debt refinancing move Broadcom revealed in an SEC filing. Not exactly the recipe for a steady open.
Chinese authorities have ordered companies to halt use of cybersecurity software from over a dozen U.S. and Israeli firms, citing national security risks, according to three sources who spoke to Reuters. The U.S. companies named include Broadcom-owned VMware, Palo Alto Networks, and Fortinet. Reuters was unable to determine how many firms received the directive. Orca Security CEO Gil Geron, whose company was also reportedly targeted, called the ban “a step in the wrong direction.” (Reuters)
Broadcom dropped 4.15% during Wednesday’s regular session, underperforming as the tech selloff dragged the Nasdaq down and hit several chip stocks. Nvidia slipped 1.44%, according to MarketWatch data. (MarketWatch)
Uncertainty around China returned to the headlines this week. On Thursday, Reuters reported that China is working on new rules to limit how many advanced AI chips, including Nvidia’s H200, domestic companies can bring in. The story cites a report from Nikkei Asia. (Reuters)
Broadcom disclosed in an SEC filing that it has struck an underwriting deal to issue $4.5 billion in senior notes—unsecured corporate bonds—spanning four maturities. Coupon rates range from 4.300% due 2031 up to 5.700% due 2056. The company plans to deploy the net proceeds for general corporate needs and to pay down debt. It has also initiated redemption notices for several outstanding note series, including those linked to VMware. (SEC)
RBC Capital’s Srini Pajjuri kicked off coverage of Broadcom with a Sector Perform rating and set a $370 price target, highlighting ongoing concerns about margins and the staying power of big AI-related contracts. He noted that TPUs — tensor processing units, specialized AI chips for data centers — show near-term strength, but called the Anthropic ramp a “question mark” and described the OpenAI opportunity as “less clear.” (TipRanks)
The downside is straightforward: a broad, lasting China directive could push VMware’s customers toward local options, hurting renewals and stalling new business. But if the notice ends up narrow, patchily enforced, or gets rolled back, attention will shift back to AI demand and refinancing details.
Investors are gearing up for any updates from Broadcom, Chinese regulators, or other firms mentioned in the report. All eyes will be on whether the software blacklist expands beyond cybersecurity. The bond market is focused on upcoming redemption dates: Jan. 17, Jan. 22, and Feb. 6. (Investing)
