The tech stock rout stretched into a second day and spread globally following a dramatic dip on Wall Street on Monday.

South Korean stocks took the biggest hit, with Samsung Electronics and SK Hynix each plunging by more than an eye-popping 12%. Analysts are once again pointing a finger at record AI spending, combined with the prospect of higher borrowing costs as a growing consensus expects the US Federal Reserve to hike interest rates by the end of the year.

Stock volatility of this nature has become commonplace as AI jitters reverberate across the market. “It just feels very, very frothy,” an equity strategist said at a conference in Seoul.