(Reuters) - Intel Corp (NASDAQ:INTC) shares fell as much as 5 percent on Thursday, marking their biggest one-day drop in more than a year, a day after a report said mobiles and computers using its chips were vulnerable to being hacked.
Intel's shares were trading at $43.16 (£31.86) in heavy early morning trading. They closed down 3.4 percent on Wednesday.
Security researchers on Wednesday disclosed a set of flaws that they said could let hackers steal sensitive information from nearly every modern computing device that uses chips from Intel, Advanced Micro Devices (NASDAQ:AMD) Inc and ARM Holdings (LON:ARM).
Intel said it has started providing software and firmware updates to mitigate the security issues, which it claimed would not have any financial or market-share impact.
The chipmaker said the issue was not a design flaw, but it would require users to download a patch and update their operating system.
"We believe the impact to Intel's financials and long-term market share is minimal," Instinet analyst Romit Shah wrote in a note.
Evercore analysts agreed with Shah and said they do not expect a material impact as Intel has previously has provided patches for several bugs without causing financial repercussions.
Morgan Stanley (NYSE:MS) analysts said the concerns over the decline in performance of its chips due to the flaws were overblown.
"We see this as primarily a public relations issue, rather than a business issue," the analysts wrote in a note.