'Unlike Anything We've Built': Nvidia Unleashes Groundbreaking Chip for Nintendo Switch 2

Nvidia CEO Jensen Huang has sent shockwaves through the gaming and tech industries with bold claims about the custom chip powering Nintendo's highly anticipated Switch 2 console. Describing it as Nvidia's most advanced mobile graphics technology yet, Huang's comments have intensified excitement in the run-up to the console's release.

Nvidia's Console Innovation: The Switch 2 Breakthrough

In a video shared by Nintendo ahead of the console's Thursday launch, Huang described the Switch 2 as featuring 'three breakthroughs': full hardware ray tracing, support for high dynamic range (HDR), and a new architecture enabling backward compatibility. 'It's unlike anything we've built before,' Huang said.

He added that the chip also includes advanced artificial intelligence processors, allowing it to 'sharpen, animate, and enhance gameplay in real-time'. While Huang withheld detailed technical specifications, he stated that the Switch 2 delivers 'the most advanced graphics ever in a mobile device'.

Huang also honoured former Nintendo CEO Satoru Iwata, crediting him with the original vision for the hybrid console concept. 'Switch 2 is more than a new console,' Huang noted. 'It's a new chapter worthy of Iwata Son's vision.'

A Decade-Long Partnership Shaping the Future

Nvidia's collaboration with Nintendo began in 2015 when the Japanese gaming giant selected a prototype based on Nvidia's Tegra X1 system-on-chip (SoC) for the first Switch console. Huang foresaw a relationship lasting decades, given Nintendo's reputation for fostering long-term supplier partnerships.

That same custom chip enabled the Switch's hybrid format and powered all 132 million units sold since its 2017 debut. Huang once said that Nvidia had invested 'several hundred engineering years' to customise the SoC and logic board to Nintendo's specifications. Nintendo subsequently acquired the intellectual property, using it as the blueprint for its hardware development.

Market Reaction and Financial Upswing

While Nvidia no longer discloses Tegra revenue separately, the division reported $1.45 billion (£1.07 billion) in fiscal 2020, accounting for 13% of the company's total revenue.

Following Huang's statement, Nvidia shares climbed 3% in midday trading on Tuesday. The stock has risen 4% year-to-date and 24% over the past twelve months. Nintendo shares, meanwhile, inched up by 0.1%, contributing to a remarkable 40% gain this year and a 50% increase over the past year, according to Investing.com.

Nvidia's Market Dominance Reaffirmed

Beyond the gaming sphere, Nvidia has once again emerged as the world's most valuable company, overtaking Microsoft on 3 June. This marks the first time since January that Nvidia has reclaimed the top spot in market capitalisation.

The chipmaker closed the last trading session with a valuation of $3.45 trillion (£2.55 trillion), narrowly surpassing Microsoft's $3.44 trillion (£2.54 trillion). This resurgence is credited to relentless demand for Nvidia's AI chips, widely used by firms such as OpenAI.

Despite mounting geopolitical risks and US export controls, Nvidia's market resilience has been striking. Its share price has soared by 24% in the past month alone, boosting its value by $1 trillion (£0.74 trillion) in just two months.

Huang's praise for the Switch 2 chip signals not just a new era for Nintendo but also cements Nvidia's dominance in both the gaming and AI markets.