NVIDIA Might Make Bank From Nintendo Switch

With the Nintendo Switch's early success, a lot of the focus has been on Nintendo and how it stands to benefit. Obviously, a successful Switch means a successful Nintendo, especially after the Wii U failed to find a significant audience. There's one other company that could benefit from the Switch taking off, though: NVIDIA.

NVIDIA, as some of you already know, makes the processors that power the Nintendo Switch, so this stellar launch is good for both companies. In fact, a new report from RBC Captial Markets (as reported by Yahoo Finance) says that NVIDIA could see an extra $300 million to $400 million in revenue from Switch sales in fiscal year 2018.

RBC cites Nintendo's desire to ramp up production for the fiscal year. Nintendo previously stated that it would like to sell as many as 10 million more units in FY2018, but other reports claim that Nintendo could raise production to as many as 16 million units. If it does that, RBC says, NVIDIA certainly stands to make come cash.

Things have certainly been encouraging on that front. Nintendo's figures for launch show nearly 3 million units sold. Demand is clearly there, but one concern is that Nintendo may not be able to keep up with that demand. We're now more than two months out from launch and consoles can still be difficult to find, with new shipments selling out quickly.

That's a problem GameStop doesn't see ending anytime soon, which isn't great news if you're still looking for a Switch. Still, we're guessing that both Nintendo and NVIDIA would prefer to have demand outpace available stock rather than have things the other way around. We'll see if Nintendo can hit its goal – and if NVIDIA gets the payday RBC expects – as we move through FY2018.

SOURCE: Yahoo Finance