The Great Rotation Is Creating a Once-in-a-Decade Buying Opportunity for This Growth Stock

By Brett Schafer – Apr 2, 2026 at 7:33AM ESTKey PointsDeflating memory chip prices could be a boon to Nintendo.The company is on the cusp of an earnings supercycle with the launch of the Nintendo Switch 2. Shares of Nintendo look cheap for investors focused on the next decade. The market is beginning to rotate away from the so-called artificial intelligence (AI) winners, as AI labs such as OpenAI scale back their chip spending commitments. Prices for memory chips, in particular, have been soaring in the last few months due to concerns about supply shortages, sending shares of Micron Technology up 282% in the last 12 months alone. Now, it's 27% off its highs, perhaps indicating that the supply shortage is over. One stock that could benefit from this rotation and a reduced price for memory chips is Nintendo (NTDOY 0.49%), which had seen its stock fall over fears of rising input costs. With input cost concerns easing, Nintendo looks like an ultra-cheap stock ready to produce improved earnings growth over the next few years. Here's why you should consider rotating into Nintendo as a perfect growth stock to own over the next decade. Image source: Getty Images. Declining memory prices eliminate a bear case Nintendo released its latest gaming hardware, the Switch 2, less than 12 months ago. It is already the fastest-selling console of all time. However, with better processing capabilities, the device uses more memory chips than the original Switch. This could create a significant cost headwind if the average memory chip price rises due to an OpenAI-induced supply shortage. Investors put two and two together and thought that Nintendo would face major cost headwinds this year, and potentially beyond. While this was likely overstated due to Nintendo's long-term contracts with suppliers and the large inventory build on its balance sheet ahead of launch, it's now looking like a bear case that quickly came and went. Memory chip prices are already declining due to a pullback in commitments from AI players such as OpenAI. This sets Nintendo up to keep pumping out new consoles, getting it ready for a massive growth cycle and expansion of its entertainment empire in the years ahead. ExpandOTC: NTDOYNintendoToday's Change(-0.49%) $-0.07Current Price$14.22Key Data PointsMarket Cap$66BDay's Range$14.16 - $14.4352wk Range$13.05 - $24.92Volume541Avg Vol3.3MGross Margin40.42%Dividend Yield0.30% Growing users and an expanding entertainment empire With these cost concerns behind them, Nintendo can focus on what matters: Selling more Switch consoles and games. It has sold over 17 million hardware units through the first nine months of the fiscal year that ends in March, leading to 99% revenue growth compared to the year prior. In the years ahead, it will need to deliver high-quality games to customers to turn these hardware sales into profits. It has begun to do so already. The recent Pokémon Pokopia title is turning into a surprise hit, with 2.2 million copies sold within four days. Over the next decade, Nintendo has plans to greatly expand its entertainment ambitions beyond just gaming. This includes a new Super Mario movie that has just come out, along with four theme parks opening soon around the globe. These will not just be profit drivers on their own, but should build more fans for the highly profitable gaming segment. Despite all this growth potential, Nintendo's stock is still down 43% from its highs. This makes it a great stock to buy and hold for the next decade.Read NextApr 1, 2026 •By Rick MunarrizCan Super Mario Save Nintendo Stock, Again?Apr 2, 2026 •By Will HealyIs Lumen Technologies Stock a Buy?Apr 2, 2026 •By Sean WilliamsPrediction: Nvidia Will Do the Unthinkable and Hit $100 Before the End of 2026Apr 2, 2026 •By Anthony Di Pizio2 Under-the-Radar Growth Stocks That Just Got Cheaper Thanks to the Market Sell-OffApr 2, 2026 •By Brett SchaferThe Nasdaq Has Entered a Correction: Here Are 2 Stocks That Are Can't-Miss BuysAbout the AuthorBrett Schafer is a contributing Motley Fool stock market analyst covering consumer goods, financials, technology, and industrials. Brett is a self-taught investor and has hosted the Chit Chat Stocks podcast since 2018. He previously worked as a lab engineer for science laboratories. He holds a bachelor’s degree in mechanical engineering with minors in finance and mathematics from Washington State University. His lab work on Major League Baseball’s juiced ball problem was featured in The Wall Street Journal and other national outlets.TMFBrettSchaferX@CCM_BrettStocks MentionedNintendoOTC: NTDOY$14.22(-0.49%)-$0.07*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.