From Nasdaq: 2025-02-19 03:35:00

Nintendo’s stock has surged 25% in 2025, nearing all-time highs, as investors anticipate the launch of Switch 2, following the success of the original Switch with over 150 million units sold.

Switch 2’s success hinges on an updated Tegra processor from Nvidia for enhanced gaming capabilities, potentially attracting popular titles like Grand Theft Auto VI. However, Nintendo’s stock valuation is already high, pricing in expected sales growth.

Despite high expectations, Nintendo’s stock trades at a premium compared to other gaming stocks, with an expensive forward P/E ratio of 34. With revenue declining and uncertainty around Switch 2 sales, investors may want to consider other video game stocks offering better value.

Investors considering Nintendo should weigh the risks, as the stock’s valuation leaves little room for error if Switch 2 sales disappoint. The Motley Fool’s Stock Advisor team has identified 10 other top stocks for potential growth opportunities, suggesting caution for investing in Nintendo at its current levels.



Read more at Nasdaq: Nintendo Stock Is Soaring: Is It a Buy, Sell, or Hold?