Nintendo Shares Drop 11% After Switch 2 Profit Underwhelms (1)

Nintendo Co.’s shares slid their most in 18 months after the company reported disappointing earnings, revealing a big hit to margins while concerns grow about the impact of soaring memory chip prices in 2026.

The stock fell as much as 11% in Tokyo on Wednesday. The Kyoto company is grappling with global disruptions from US tariffs, even as soaring component costs brought on by frenzied spending on AI hardware are weighing on its outlook.

Nintendo’s flagship Switch 2 console, off to a record-setting start in the summer, is now beset by doubt about the Super Mario Bros. creator’s ability ...