Growing Worries About Chip Price Increases: Nintendo's Market Cap Drops by $14 Billion
2025-12-10 / Read about 0 minute
Author:小编   

On December 10, Nintendo's stock price on the Japanese market plummeted by as much as 4.7% in a single day, hitting its lowest level since May of this year. The market is increasingly concerned that the skyrocketing prices of components, particularly memory chips, will eat into Nintendo's profits. The sharp rise in memory costs threatens to compress the profit margins of the upcoming Switch 2 game console. Additionally, higher costs for accessories could curb market demand. Market research firm TrendForce reports that the price of the 12GB RAM module used in the Switch 2 surged by 41% this quarter. Meanwhile, NAND memory prices also climbed nearly 8%, driving up the costs of additional memory cards. Amid the escalating memory supply crisis, investor enthusiasm for the Switch 2 has waned. Nintendo's stock price declined on seven out of the eight trading days in December, leading to a market capitalization loss of approximately $14 billion.