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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)
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Aside from possibly the N64 and GameCube, Nintendo has never tried to push technology in that way.
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.