Memory-chip squeeze dents Nintendo’s Switch 2 outlook despite profit surge

Nintendo’s shares fell over 10% after quarterly revenue missed estimates as a rare memory-chip shortage raises costs and could squeeze margins, even though profit rose 24% and revenue climbed 86% on solid Switch 2 sales. The company kept its full-year Switch 2 outlook, but investors worry about long-term component costs. With upcoming titles like Mario Tennis Fever and Pokopia and a Super Mario Galaxy movie planned, Nintendo hopes to sustain momentum, though analysts say 2026 could be pivotal for broad Switch appeal.