Nintendo shares hit record high due to Switch 2 anticipation, Saudi investment speculation
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Nintendo's shares reached an all-time high yesterday amid a surge in stocks on the Nikkei exchange.
Nikkei Asia, spotted by VGC, reported the platform holder's share price temporarily rose to ¥7,902 ($54), showing growth of 5% over the previous day.
This brought Nintendo's market capitalisation up to ¥10 trillion ($69 billion) for the first time since November 2007, one year into the Wii's lifecycle.
The rise in shares was attributed to anticipation for Switch 2 – or whatever the company's next console will be called – which is widely expected to be on shelves by the end of the year.
It was also attributed to speculation of further potential investment from Saudi Arabia, with the nation's Public Investment Fund recently increasing its share of Koei Tecmo.
Saudi Arabia's PIF has increased its stake in Nintendo over the past few years, currently holding 8.26% of shares – which makes it one of the platform holder's largest shareholders.
Other factors include the ongoing success of Nintendo's IP business, with Nintendo-themed areas in Universal Studios theme parks around the world and The Super Mario Bros Movie ending 2023 as the second highest-grossing film of the year, beaten only by Barbie.
A sequel is expected, and Nintendo announced a live-action Legend of Zelda movie back in November.
Nintendo's rise contributed to an increase of the Nikkei Stock Average, which reached 2.01% on Wednesday – the highest level since February 1990.
Switch 2 was a hot topic in our annual roundup of analysts' predictions for the year ahead, with Kantan Games' Dr Serkan Toto suggesting the console is more likely to be "an iteration rather than a revolution" when compared to
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