Nintendo Stock Rises on More Good News About the Switch 2

A boy plays a Nintendo Switch 2 at a trade fair in Germany in August. (INA FASSBENDER/AFP via Getty Images)

Key Points

• Nintendo increased its sales forecast for the Switch 2 to 19 million units from 15 million units for the fiscal year.
• The Switch 2 sold 10.4 million units through September, with 9.6 million units of the Mario Kart World game also sold.
• Nintendo’s American depositary receipts rose 4.5% on Tuesday, contributing to a 55% increase this year.

The Nintendo Switch 2 console is a huge blockbuster. More evidence, if any was needed, has just arrived.

On Tuesday, the Japan-based videogame publisher raised its sales forecast for the Nintendo Switch 2 to 19 million units from 15 million units for the fiscal year ending in March. Nintendo also said it had sold 10.4 million units of the Switch 2 through September, along with 9.6 million units of the Mario Kart World game.

TD Cowen analyst Doug Creutz reiterated his Buy rating on Nintendo following the news. The latest Switch 2 results put “the console on track for the best year 1 performance in industry history,” he wrote.

In June, Nintendo announced the Switch 2 sold more than 3.5 million units worldwide in the first four days, making the system the fastest-selling Nintendo console ever at launch.

In April, Barron’s predicted the Switch 2 would be a hot seller and recommended Nintendo shares. We argued the new console would deliver what gamers wanted—a Switch with better technical capabilities that maintains the original’s charm and overall form factor.

Nintendo’s American depositary receipts were up 4.5% on Tuesday. The stock is up 55% this year.

Write to Tae Kim at tae.kim@barrons.com