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A spike in Treasury yields is raising the cost of capital for debt-hungry AI infrastructure companies even as the sector's buildout shows no signs of slowing, increasing financial risk for heavily leveraged data-center and chip projects. Analysts warned that elevated borrowing costs could squeeze margins for firms financing massive AI capital expenditures. More broadly, commentators noted that major stock indexes hovering near record highs are masking underlying strain from elevated oil prices, rising Treasury yields and a Federal Reserve seen as bracing for further rate hikes—cracks that could widen if AI-related credit stress spreads.