The new vulnerability is being called "ZombieLoad".
The exploit could as easily read secure tokens or other passwords.
A video of the flaw can be found here. "MDS techniques are based on a sampling of data leaked from small structures within the CPU using a locally executed speculative execution side channel".
The company noted that it has addressed the hardware problem in its processors, including a fix to its future processors, with microcode updates.
KitGuru Says: The unveiling of Zombieload/MDS comes at an unfortunate time, as Computex is right around the corner and Intel is due to release new CPUs very soon. The processor manufacturing giant on Tuesday began shipping microcode updates created to block these vulnerabilities from being exploited by clearing data from CPUs more quickly. This makes "data to bleed across  boundary walls", going outside the app it belongs to.More news: Realme X Android smartphone gets official
Meanwhile, Google has also released patches to mitigate against ZombieLoad. Intel says that the performance hit after installing the fix will be minimal for consumers, although cloud and data center operators could be affected more materially.
They have published ZombieLand proof-of-concept exploit code to GitHub.
The flaws were discovered by researchers from the Austrian university TU Graz, Vrije Universiteit Amsterdam, the University of MI, the University of Adelaide, KU Leuven in Belgium, Worcester Polytechnic Institute and Saarland University in Germany, as well as security firms Cyberus, BitDefender, Qihoo 360 and Oracle.
"Being able to eavesdrop on a target is always a favourite in a cyber criminals' toolkit but we also shouldn't forget that tools such as this aren't just used by the bad guys", said Moore.
"Tricking the CPU into revealing protected data could have massive implications to millions of people around the world", he added.More news: Huawei says Trump's ban is in no one's interest
Since ZombieLoad is a vulnerability discovered by researchers rather than a known threat in the wild, it's impossible for your antivirus to protect you from any potential hacks - at least not in the early stages.
"It's another day and another big headline impacting a technology giant in the cybersecurity industry", said Sam Curry, chief security officer at Cybereason.
PC users are also affected by these new vulnerabilities and will need to patch their systems, but most users probably won't notice any performance impact.
It's the latest revelation of a hard-to-fix vulnerability affecting processors that undergird smartphones and personal computers.More news: Food, exercise best bet to avoid dementia, rather than popping vitamins