Nintendo Shares Climb 6.8% as Investors Rotate Out of AI Ahead of Nvidia Earnings
Updated
Updated · Futurism · May 24
Nintendo Shares Climb 6.8% as Investors Rotate Out of AI Ahead of Nvidia Earnings
3 articles · Updated · Futurism · May 24
Nintendo shares rose as much as 6.8% in Tokyo, extending gains for a third straight day as Japanese video game stocks rallied.
The move reflected a rotation out of AI-linked names rather than a sudden change in Nintendo’s fundamentals, with strategists citing caution over stretched valuations in the sector.
Nvidia’s quarterly results helped validate that trade: despite another record quarter and profit that doubled from a year earlier, its shares fell a few percent after missing lofty investor expectations.
Nintendo had entered the rebound after five straight months of declines—its longest losing streak in a decade—amid investor concern that Switch 2 pricing stayed low even as memory costs climbed.
Is the AI stock sell-off a real opportunity for gaming giants, or just a temporary market overreaction?
Can a single viral Pokémon hit truly save Nintendo’s new console and reverse its months-long stock slide?
Are investors finally punishing big tech for AI's ethical problems like deepfakes and environmental costs?