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Nintendo is riding high on the success of the Switch right now, but it’s not the only company getting some huge sales boosts from a fanatic gaming community. Since the console features a Nvidia Tegra GPU setup, the graphics card maker is also set to receive a huge paycheck with sales projected to go up by 108 percent.
This report comes from Mitch Steves, an analyst over at RBC Capital Markets who just released a document with nice projections related to the Nvidia GPU. According to the figures Steves released, Nvidia could be seeing a projected sales revenue of the Tegra to reach $300 to $400 million in 2018, Yahoo reports. This estimate was made with just the Switch in mind as well, with profits from other sectors potentially adding to the overall numbers.
In any case, this projection has a lot to do with Nintendo’s announcement that it is going to double the output of its Switch production from 8 million to 16 million for this year alone. The console hybrid has been a massive success for the Japanese company, more so than anyone could have predicted. There’s no better proof of this than the fact that units of the Switch have been virtually impossible to find.
“We think the incremental 6-8M units could add $300-400M to the top line (3-4% growth to annual revenue on a $50 ASP),” the report reads. “This is a notable metric given that the Wii U sold ~13.5M units since its release in 2012 and 10M+ in the first 12 months are unlikely reflected in current estimates.”
The shortage of supplies of the Switch has actually sparked a small controversy of its own since even the biggest retailers like GameStop, Amazon, Best Buy, and eBay have been conspicuously devoid of the console. With the planned boost in production, Nintendo is winning the hearts of investors and gamers alike.
The same goes for Nvidia, allowing the company to get $0.85 a share instead of the expected $0.66 that analysts predicted, Venture Beat reports. Overall, the GPU maker is getting some huge gains, performing well in practically every market.
