Nintendo shares hit record high driven by Switch 2 and oil money speculation
Nintendo shares hit a record high on Wednesday as the company rode a surge in stocks that saw Japan’s Nikkei close at its highest level since February 1990.
Shares of Nintendo reached as high as 7,902 yen ($54), helping the company’s market capitalisation surpass 10 trillion yen ($69 billion) for the first time since November 2007.
The Nikkei Stock Average was up 2.01% on Wednesday to close at its highest level since February 1990.
Nikkei Aisa reports that Nintendo’s record high was driven by several factors. These include the anticipated launch of a new console, high expectations for the company’s expanding IP business, and speculation that oil money is set to acquire more Japanese game stocks.
Although the company is yet to comment publicly, Nintendo’s Switch successor is widely expected to launch this year, after VGC reported last summer that development kits were in the hands of key partner studios.
The Super Mario Bros. Movie was last year’s second-highest grossing film ($1.36 billion) globally behind Barbie ($1.45 billion), and Nintendo recently announced that a Legend of Zelda movie is in the works.
It’s also currently in the process of expanding its theme park presence with a new Donkey Kong Country section at the Super Nintendo World themed area of Universal Studios Japan.
It was revealed this week that Saudi Arabia’s Public Investment Fund (PIF) has recently raised its stake in Dynasty Warriors and Ninja Gaiden publisher Koei Tecmo from 5.56% to 6.60%, according to Dr. Serkan Toto, CEO of Tokyo-based industry consultancy Kantan Games.
The sovereign wealth fund, which is chaired by crown prince Mohammed bin Salman, also owns 8.58% of Nintendo shares, making it one of the company’s largest shareholders. And in 2022 it
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