Nintendo Shares Rebound as AI Fatigue Fuels Japan Stock Rotation

Embattled Switch 2 maker Nintendo Co. 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 Inc. and Konami Group Corp. rise more than 9% on Tuesday.