A sell-off in global technology hardware stocks deepened Thursday, with Asian chipmakers tracking Wall Street losses as concerns over further Federal Reserve interest rate hikes, financing of artificial intelligence investments weigh on sentiment.

South Korean chip giant SK Hynix plunged over 10%, while rival Samsung Electronics fell 7.1%. Other South Korean chip-related stocks also came under pressure. LG Innotek sank 8.1%, Seoul Semiconductor shed 7.7% and Samsung SDI declined 6.8%.

In Japan, technology investment giant SoftBank Group tumbled 7.9%. Semiconductor testing equipment maker Advantest dropped 6.9%, while chipmaking equipment supplier Tokyo Electron lost 5.4%. Renesas Electronics declined 5.4%.

The declines come as investors grow increasingly concerned that higher borrowing costs could weigh on the massive capital spending required to build out AI infrastructure, putting pressure on technology companies that have benefited from the AI investment boom.

Chief executives of Broadcom and Intel warned on Monday that financing could become a major headwind to the AI boom, with Broadcom’s Hock Tan saying it could be bigger challenge to AI expansion than shortages of chips or electricity.

The sell-off followed a bruising session on Wall Street Wednesday, where technology shares led broader market losses after hotter-than-expected U.S. inflation data fueled concerns that the Federal Reserve could raise interest rates further.

The tech-heavy Nasdaq Composite dropped 1.88% to close at 26,692.87, while the S&P 500 shed 1.11% to end at 7,718.94. The Dow Jones Industrial Average slipped 0.09%.

Dan Ives, tech analyst at Yorkville Ives said the latest sell-off in AI-related stocks reflects growing concerns over the cost of financing massive infrastructure projects as U.S. Treasury yields climb above 5%, but argued that underlying demand for AI computing power remains robust.

“Higher yields raise the cost of financing these builds, and investors are right to focus on balance sheets and contract structure, but rates are a financing question, not a demand question,” Ives said in a note.

Ives maintained that the latest pullback presented a buying opportunity, arguing that the AI infrastructure boom remained in its early stages despite mounting concerns over funding costs. “What would change our view is a demand signal, not a rate signal,” he said, pointing to potential cuts in hyperscaler capital expenditure plans, canceled contracts or falling GPU rental prices as warning signs.