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Nintendo does have more than they can handle. Pokemon would definitely send demand to a new level, but first they must worry about the holidays. Two big questions come to mind.

1) Will they try to release some of the more demand worthy games in the Holidays to solidify the demand for Switch such as Smash Brothers or Pokemon despite not being able to meet demand outside of even the holiday season? (unlikely)
2) Are they taking adequate measures at the moment to activate new factories to increase Switch production? (more likely)

They may not be able to pull things together for the fall, but the choices they make now will impact Switch sales trends and developer mindset for the next 4 years.