Wall Street is getting more bullish on Nintendo $NTDOY ( ▲ 5.44% ) . The company’s US-traded ADRs climbed Friday as investors warmed up to new signs that the Switch 2 is gaining traction.
This comes after a pretty ugly stretch for the console market, including the worst November in 30 years for US gaming console unit sales.
Switch 2 appears to be outpacing prior cycle comps
Circana reported Thursday that Switch 2 sales rebounded in December. Analyst Mat Piscatella noted unit sales are tracking 35% ahead of Sony’s PlayStation 4 at the same point in the lifecycle, seven months after launch.
That’s a strong data point because the PS4 was basically the gold standard for modern console dominance.
Nintendo doesn’t need a blowout. It just needs consistency.
Analysts shift from skepticism to confidence
The improving sales signals are showing up in analyst commentary too:
Jefferies and Wolfe Research both highlighted Switch 2 strength in recent notes
Wolfe upgraded Nintendo from underperform to peer perform
Wolfe also largely maintained its estimate of 20.5 million Switch 2 units sold in the fiscal year ending in March
Translation: the Street is starting to treat Switch 2 momentum as durable, not just launch hype.
Macro tailwind: Japan outlook improves
Adding to the positive tone, the Bank of Japan raised its 2026 GDP growth forec
ast from 0.7% to 1%, which helped lift sentiment around big Japanese exporters and household-name corporates like Nintendo.
Not the main catalyst.
But it helps.