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Nintendo Stock Outlook: It’s Time To Take Profit On Nintendo

The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

Investor confidence over NTDOY went sky-high after the debut of the Switch game console. Congratulations to all those who went long NTDOY before the Switch was released.
Nintendo launched the Switch last March 3. Its stock has since returned +69.1%. Nintendo also posted a 52-week high of $44.33 last month.
To date, the cumulative global sales of the Switch have reached 4.7 million units. The Switch’s early success is why Nintendo’s latest quarterly ER showed it achieved +148.6% Y/Y revenue growth.
Nintendo seems unable to extract faster production and distribution of its hit game console. The Switch competes for essential components that Apple, Samsung, and other smartphone vendors require.
Greed is good, but it might be time to take profit on NTDOY now while the euphoria over Switch fades away.

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The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

Summary:

Contrary to previous rumors, Nintendo’s next console product, the Switch is not using a processor/GPU from Advanced Micro Devices
Nintendo decided to use a custom Tegra processor from Nvidia for its new Switch home gaming system.
AMD used to supply the custom GPU/CPU chip for Nintendo up until the Wii U console. The Switch win is therefore a big deal for Nvidia.
The hybrid handheld/dongle Nintendo Switch is a disruptive product that could sell tens of millions of units.
NVDA has buy signals based on its near and long-term algorithmic forecasts.