Do nothing. win?
It’s more of Nintendo’s approach to AI, and the market is giving the Japanese video game maker the benefit of the doubt. bloomberg’s analysis.
Just to be clear, Nintendo isn’t a great stock. Investor concerns about the Switch 2’s low pricing, which remained unchanged even as memory prices soared, helped the company end a five-month streak of declines, the longest in a decade.
But earlier this week, signs of life were seen. Stocks rose as much as 6.8% for the third consecutive day in Tokyo on Tuesday, adding to a broader rally in Japanese video game stocks, according to reports.
However, this is more about a change in investor attitudes towards AI than a reflection on Nintendo.
“This is all part of the rotation out of AI technology and into the down-and-out stocks,” said Amir Anvarzadeh, Japanese equity strategist at Asymmetric Advisors. bloomberg. Tuesday’s rise “underscores growing market alarm over large gains in unsustainable AI technologies.”
Tomo Kinoshita, global market strategist at Invesco Asset Management Japan, speculated that this could be a sign that investors are hedging their bets ahead of Nvidia’s quarterly results, which will be released on Wednesday.
“NVIDIA has often failed to meet the market’s very high expectations, and AI stocks could suffer as a result,” he said. “We expect many investors to temporarily sell AI stocks in preparation, which is driving rotation.”
That prediction seems to have come true. Despite setting a new record for the quarter, NVIDIA’s numbers weren’t as impressive as investors had hoped, and the stock price fell several percentage points. The profits, which literally doubled compared to the same period last year, clearly weren’t enough.
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