Shares of VMware (NYSE:VMW) witnessed a sharp drop of 12% intra-day today due to rising concerns about China's review of the company's significant sale deal to Broadcom. Consequently, Broadcom's shares also saw a dip of around 4%.

Even though there aren’t any apparent problems with the proposed solution, the Chinese regulatory body might need an extended period to finalize its review.

Moreover, the transaction's progress might be influenced by a recent decision from the U.S. government. This decision involves tightening restrictions on the sales of high-end chips by Nvidia, especially those designed for the Chinese market.