Embattled Switch 2 maker Nintendo enjoyed its biggest stock gain in two months on Tuesday as concerns about overvaluation in the AI sector sent investors on the hunt for bargains elsewhere.
Nintendo shares climbed as much as 6.8% in Tokyo to mark a third straight day of gains — their longest winning streak since mid-March. The advance is part of a broad rally in Japanese video game stocks that saw Bandai Namco Holdings and Konami Group rise more than 9% on Tuesday.
The revival in Japanese gaming shares comes after months of headwinds brought on by a memory chips supply crunch and worries it will hit hardware sales. Led by Nintendo’s portfolio of beloved game characters and franchises, Japan is home to a wealth of highly valued intellectual property assets, content that companies are increasingly looking to leverage across genres and formats of entertainment. Nintendo rival Sony Group has recently shifted its focus to IP, including publishing rights for music and film.