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Market Update

Fund Investors Also Will Feel Intel's Pain

The tech giant's revenue warning will hit hundreds of mutual funds.

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Expect investors to punish Intel (INTC) Friday. Shares of the world's largest semiconductor company dropped 20% in after-hours trading after it issued a terse statement in which it reduced its revenue estimates for the third quarter. Selling may bleed over into Friday, and several computer makers like Dell (DELL) and Microsoft (MSFT), as well as mutual funds with big stakes in the chipmaker, could feel repercussions.

Intel is in the portfolios of 1,176 mutual funds, and the stock accounts for more than 5% of the assets in 127 of those funds, according to the most recent portfolio data in Morningstar's database.

Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.