Analyst: Switch 2 launch is explosive, NVIDIA and other related suppliers benefit

Zhitong
2025.06.06 04:01
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With the launch of Nintendo Switch 2, the market response has been enthusiastic, benefiting related suppliers such as NVIDIA. Analysts point out that if Switch 2's sales can reach or exceed the 150 million units of its predecessor, NVIDIA's embedded systems business may see an uplift. Nevertheless, analysts also believe that the market impact of Switch 2 may not meet expectations, and the anticipated effect on NVIDIA is limited. Nintendo expects to sell 15 million units of Switch 2 within the fiscal year 2026

According to Zhitong Finance APP, the highly anticipated Nintendo Switch 2 gaming console was officially launched today and quickly sold out on various retail platforms. The console is powered by a custom chip from NVIDIA (NVDA.US).

Seeking Alpha analyst Bernard Zambonin stated, "If the sales of Switch 2 can reach or exceed those of its predecessor (which sold over 150 million units), then suppliers like NVIDIA (which provides the custom Tegra 239 chip) may see an uplift in their embedded systems business, although this business still lags far behind the revenue scale of data centers or gaming graphics cards." The Switch 2 also features UFS storage provided by SK Hynix and a Wi-Fi/Bluetooth receiver from MediaTek.

NVIDIA stated that the new console supports up to 4K gaming in TV mode and 1080p gaming at a frame rate of 120 frames per second in handheld mode. The device also supports HDR and AI image upscaling technology to enhance visual effects and improve gaming smoothness. Its graphics processing performance is ten times that of the first-generation Switch.

Seeking Alpha analyst Michael Del Monte remarked, "NVIDIA's products seem to be the most abundant in the Nintendo Switch 2. Comparing the configurations of the Nintendo Switch OLED and Switch 2, I have reason to believe that the impact this console will have in the market may not be as significant as people imagine, especially in terms of display quality. Although NVIDIA has provided more content in the new device, given its weak influence compared to the data center market, the release of Switch 2 is not expected to have a major impact on NVIDIA."

Nintendo has stated that it expects to sell 15 million units in the fiscal year ending March 2026, but analysts believe this figure is conservative.

Seeking Alpha analyst Compounding Chef wrote, "Despite facing challenges related to tariffs, Nintendo's reasonable pricing strategy and accessory adjustments should mitigate these impacts. I expect sales to reach 17 million units by March 2026."

The original Switch ranks as the third best-selling gaming console of all time, with sales only behind Sony's PlayStation 2 and Nintendo's DS. CNET's Switch 2 inventory tracker shows that the console is sold out at Walmart (WMT.US) and GameStop (GME.US). It can only be purchased in-store at select Best Buy (BBY.US), Target (TGT.US), and Staples locations

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