Nvidia (NVDA) may currently be known as a powerhouse in the artificial intelligence (AI) sector, but the company has always had close ties to the video game industry. Its graphics processing units (GPUs) power video games on PC, and it has also worked alongside console manufacturers, such as Nintendo (NTDOY), to power their gaming devices. However, Microsoft (MSFT) and Sony (SONY) have opted for components from NVDA’s rival, Advanced Micro Devices (AMD), for their gaming solutions.
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With Nvidia providing the hardware behind the Nintendo Switch, it only makes sense that the video game giant would reach out to the company when it started developing the Switch 2. This resulted in the GPU maker providing Nintendo with new technology to make its next handheld/home console hybrid 10 times stronger than its predecessor.
Nintendo Switch 2 Specs
Nvidia provided Nintendo with a custom processor for the Switch 2. This includes a GPU that has dedicated RT Cores and Tensor Cores. These cores provide the Switch 2 with more power and the ability to render higher resolutions and more detailed graphics than previous Nintendo devices. The RT Cores provide RTX lighting support, while the Tensor Cores support AI-powered Deep Learning Super Sampling (DLSS) for sharper visuals.
With these Nvidia components powering the Nintendo Switch 2, the device can handle 4K gaming while docked and 1080p at 120 frames per second (FPS) in handheld mode. Also included in the console are HDR support, AI face tracking, and AI background.
Is NVDA Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus estimate for Nvidia is Strong Buy based on 39 Buy and three Hold ratings over the last three months. With that comes an average price target of $71.46, representing a potential 71.46% upside.