U.S. technology shares are showing signs of vulnerability after a massive run, which has some investors pointing to overdone AI-driven gains while funds have taken steps to position away from the high-flying sector.

Nvidia, the chips group that has surged to become the world’s first $4tn company on the back of AI, fell 3.5 per cent on Tuesday, while software group Palantir dropped 9.4 per cent and chip designer Arm shed 5 per cent.