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Nintendo reportedly showed a demo of the ‘Switch 2’ console at Gamescom which included visuals comparable to the PS5 and Xbox Series X.
(www.videogameschronicle.com)
this post was submitted on 07 Sep 2023
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And it's been true since the very first console. The Master System was more powerful than the NES, and the Genesis/Mega Drive was more powerful than the Super NES (arguably; the Sega CPU was far more powerful than Nintendo's). Same is true for its portables.
They've always prioritized per-unit margins. It's a conservative approach, but it means profit on every console sold.
So there's a 0% chance this console is actually as powerful as a PS5. However, there's a good chance there are hardware and software techniques being used to upscale a lower resolution image.