Some of Nvidia’s earliest backers in Australia are repositioning for a period of lower returns from the artificial intelligence darling amid scepticism over whether it can fulfil the lofty earnings growth baked into its $US3.1 trillion ($4.5 trillion) valuation.

Munro Partners, which long held Nvidia as the largest position in its global growth fund, slashed its stake by a third heading into the chipmaker’s second quarter earnings, expecting some “froth” to come out of the stock.