Nintendo Co.’s stock surged to an all-time high on Wednesday, lifted by strong early sales of its next-generation Switch 2 console and investor optimism about future earnings.
The stock climbed as much as 7% to 13,320 yen in Tokyo trading, marking its fifth consecutive day of gains.
The rise follows the Switch 2’s global release on June 5, which has been met with enthusiastic consumer demand and bullish analyst upgrades.
Tokyo-listed shares of Nintendo have gained more than 46% so far this year, adding roughly $39 billion to the stock’s value, according to a CNBC calculation of data from S&P Capital IQ.
Analysts believe the share price could still climb further.
Switch 2 fastest-selling console in company history
According to a company statement released Thursday, Nintendo sold over 3.5 million units of the Switch 2 within its first four days — making it the fastest-selling game console in the company’s history.
By comparison, the original Switch sold 2.74 million units in one month, the PS4 sold 2.1 million in two weeks, and the PS5 sold 3.4 million in one month.
The console features a range of upgrades, including a larger 1080p screen, a faster processor, improved graphics capabilities, redesigned Joy-Con controllers with mouse functionality, and integrated voice and video chat via the new GameChat feature.
Key launch titles, including “Mario Kart World,” have helped power strong early sales momentum.
Jefferies hikes target, sees more upside
“We see [a] huge share-price upside from here,” analyst Shunki Nakamura said.
We believe Switch 2 will be a big hit, and the share price has not sufficiently factored in the success of [the] console yet.
Jefferies analysts raised their cumulative sales forecast for the Switch 2 from 66 million to 69 million units by March 2028, calling the console launch “the biggest ever”.
The launch alone already accounts for 20% of the target for the current fiscal year.
They also reiterated a buy rating on Nintendo and lifted their target price to 20,780 yen, up from 20,000 yen previously.
Earlier this month, Jefferies also forecast more than fourfold growth in Nintendo’s operating income over the next three years.
Experts forecast more record-breaking sales
The bullish sentiment is echoed across the market.
On MarketScreener, 12 of 26 analysts rate Nintendo as a ‘buy’ and three as ‘outperform.’
Many view the current momentum as the beginning of a longer growth cycle, especially with a strong pipeline of proprietary games and seasonal titles.
Gaming industry consultant Serkan Toto told CNBC that Nintendo not only met but exceeded lofty expectations.
“All signals prior to launch pointed to significant demand, and I believe we will see further records broken over the next weeks or months,” he said, projecting more than 20 million Switch 2 units sold in the first year.
David Gibson of MST Financial agrees, forecasting 20 million units sold for the fiscal year ending March 2026.
Gaming seen as haven amid trade tensions
Beyond the console’s performance, analysts also point to macroeconomic factors boosting the sector.
With US-Japan trade tensions unresolved following the Group of Seven summit, capital has flowed into gaming stocks, viewed as less vulnerable to tariffs.
“As the US and Japan failed to reach an agreement on tariff measures on the sidelines of the Group of Seven summit, funds are flowing into the game sector, which is less affected by tariffs,” said Hideki Yasuda, an analyst with Toyo Securities Co.
Shares of other major Japanese game developers also rose on Wednesday, with Square Enix gaining up to 4.7% and Bandai Namco advancing 3.9%.
Outlook remains strong
Nintendo expects to sell 15 million Switch 2 units in fiscal 2026 alone.
With new titles on the horizon — including a Splatoon spin-off announced on June 11 — and a loyal fanbase, the company is well positioned for sustained growth.
The console’s strong early showing and the stock’s record high suggest that Nintendo has struck the right balance between hardware innovation and gaming content.
If momentum holds, Switch 2 could become not only Nintendo’s most successful console to date, but also a defining product in the broader gaming market.
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