Nintendo shares rebound as AI fatigue fuels Japan stock rotation

Nintendo shares climbed as much as 6.8% in Tokyo Tuesday to mark a third straight day of gains -- their longest winning streak since mid-March. 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.