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That\u2019s more less Nintendo\u2019s approach to AI, and the market is rewarding the Japanese video game maker for it, in Bloomberg\u2019s analysis<\/a>.<\/p>\n For the record, Nintendo is not a stellar stock. Investor uncertainty over its cheap Switch 2 pricing, which didn\u2019t budge even as memory costs soared, helped cap off five straight months of decline, the longest loss streak sustained by the company in a decade.<\/p>\n But earlier this week, it showed some signs of life. On Tuesday, shares climbed as much as 6.8 percent in Tokyo for three days in a row, joining a broader rally of Japanese video game stocks, per the reporting.<\/p>\n It\u2019s less a reflection on Nintendo, however, and more on shifting investor attitudes towards AI.<\/p>\n \u201cThis is all part of the rotation out of AI tech and into beaten-up names,\u201d Amir Anvarzadeh, Japan equity strategist at Asymmetric Advisors Pte, told Bloomberg. Tuesday\u2019s climb \u201cunderline the growing caution about the market \u2014 massive gains in AI tech which cannot be sustainable.\u201d<\/p>\n Tomo Kinoshita, global market strategist at Invesco Asset Management Japan, speculated that it was a sign of investors hedging their bets ahead of Nvidia\u2019s quarterly earnings, which were released Wednesday.<\/p>\n \u201cNvidia often fails to live up to the market\u2019s sky-high expectations, and AI stocks can suffer as a result,\u201d he said. \u201cI expect many investors are temporarily selling AI stocks in preparation, which is driving the rotation.\u201d<\/p>\n That prediction seems to have been vindicated. Despite clinching another record quarter<\/a>, Nvidia\u2019s numbers were less impressive than investors hoped<\/a>, sending shares tumbling by a few percent. Its profits literally doubling from the same period a year ago was apparently not enough.<\/p>\n