Nintendo (7974) Impact of rising semiconductor prices slightly less than we had estimated; expecting richer pipeline from 2027

研报英文原文证据摘录

Nintendo (7974) Impact of rising semiconductor prices slightly less than we had estimated; expecting richer pipeline from 2027

J P M O R G A N Asia Pacific Equity Research

27 May 2026

Nintendo (7974) Overweight

7974.T, 7974 JP

Impact of rising semiconductor prices slightly less than Price (27 May 26):¥7,131

we had estimated; expecting richer pipeline from 2027 ▼Price Target (Dec-26):¥10,000 Prior (Dec-26):¥12,800

The impact of sharply rising semiconductor prices has become clearer based on 4Q

FY2025 results. Nintendo says it is drawing up a new product launch schedule on Japan Equity Research

the assumption that Switch 2 sales volume will increase every financial year over Games, Internet, Services

the next five years. While the veracity of this assumption is uncertain, at the very AC Junko Yamamura

least, sales volumes of third-party titles, catalog titles and mid-size titles are on the (81-3) 6736-8644

increase. We think products for the FY2026 year-end sales campaign will likely junko.yamamura@jpmorgan.com

disappoint, but that larger titles will start to emerge in 2027. Investment appeal Ryo Nakagawa

should increase, particularly from June 2026 onward as new title announcements (81-3) 6736-8643

for the year-end sales season are expected. As a result, we lower our operating ryo.nakagawa@jpmorgan.com

profit estimates for FY2026 onwards, and our December 2026 price target to JPMorgan Securities Japan Co., Ltd.

¥10,000 from ¥12,800, but maintain our Overweight rating.

• We like the sustainability of operating profit growth: We leave our annual Key Changes (FYE Mar) Prev Cur Δ

Switch 2 sales volume estimates for FY2027 onwards largely unchanged, and Adj. EPS - 27E (¥) 367.14 346.54 -5.6%

lower our estimates for major game launches from three a year to two. We also Adj.