Wednesday's Final Takeaways: China Investigates DeepSeek & Moonshot AI, Presses AVGO with Scrutiny

Sam Vadas (0:00)

Welcome back to Market on Close. I'm Sam Vadas at the New York Stock Exchange. Here's some final thoughts on today's session.

Broadcom is reportedly being scrutinized now over in China. According to the Financial Times, Chinese authorities are looking into the use of the company's hardware in state-backed data centers. It comes amid a push to use domestic gear and reduce reliance on foreign infrastructure. The report says China's been examining a number of Broadcom switches, which are used to transmit large volumes of data at high speeds in recent weeks. The survey is said to have found that Broadcom switches may be used by as many as 90 percent of state-owned companies, which could represent billions of dollars in sales for local suppliers. State-backed data centers are no longer permitted to use Nvidia products, but Huawei is one of the local companies which do sell high-end switches in China, although experts say they are less energy efficient than Broadcom. So we saw shares in Broadcom lower today. Here alongside the broader chip sell-off, but China has also reportedly opened an investigation into data security over DeepSeek and Moonshot. That's according to the information which says officials have been sent to interview staff at the companies to look into any breaches after Anthropix accusations that China-based labs have been routing data through Claude. What China is reportedly worried about is that the companies may have exposed sensitive data from the Chinese military or police in violation of data security laws. We did see shares in Alibaba falling over 4% in the US session today. That came off the back of a four-day winning streak off the back of its release of its new chip.

Heading into tomorrow, we've got a couple of things on the boil as we mentioned with KG. On the data front, we've got those weekly jobless claims. We've also got some new home sales.

Some Fed speak as well. We'll hear from Barkin and Polson, but it's all gonna be about the Trump Sea Summit, whether we'll get any major deliverables from that. We'll be watching at this time tomorrow. That's gonna do it here for Market on Close for today. I'm Sam Vadas. Be sure to download the Schwab Network app available in the Apple App Store and tune in 24 seven on schwabnetwork.com. Have a great evening. We will catch you tomorrow.