Broadcom (AVGO) shares fell as much as 6% on Friday, August 14. This decline followed reports that hackers are actively exploiting a critical security vulnerability in VMware software. The stock's drop weighed heavily on both the S&P 500 and the Nasdaq indices.
The vulnerability, identified as CVE-2026-59310, affects the VMware vCenter Syslog Server. It allows attackers with network access to execute arbitrary code. Broadcom originally disclosed the flaw and issued a security patch on July 29.
Cybersecurity firms report that attackers began exploiting the vulnerability within days of its disclosure. Researchers have identified hundreds of compromised IP addresses across 47 countries. Investors are now assessing the potential impact on customer confidence and VMware's broader business operations.