In fact, the PowerShares Dynamic Networking (PXQ) exchange-traded fund (ETF) has surged 35% since the start of the year, versus CSCO's 15.8% decline for the same period, indicating that the networking sector is doing just fine without the blue chip's help.
It's a similar dynamic to what is happening with Wall Street banks that committed to fund leveraged buyouts, only to have trouble selling those loans in the syndicated loan market--they have to hold them on balance sheet until the credit markets come back to life.
Only on rare occasions, like when a hedge fund or a professional investor such as Carl Icahn threatens this dominance, does this dynamic come under peril.
The iShares Dow Jones U.S. Pharmaceuticals Index Fund (IHE) has Watson at 2.84% of its holdings and PowerShares Dynamic Pharmaceuticals Portfolio (PJP) is 2.8% WPI.