I feel I need to fill in a bit here as this is rather misleading. It's not the full kind of emulation we are seeing on PC. According to their website they are basically using what is known as HLE or High Level Emulation.
See most emulators use LLE or Low Level Emulation, which is the process of creating software that mimics the functionality of hardware. The major downside of LLE is it requires significantly more powerful hardware to run than what you are trying to emulate. But iut has the positive of being much more accurate.
However if you read their website (which it seems nobody did) they clearly state they are 'translating" them on a software level which is basically what HLE is. HLE instead of mimicking the original hardware is basically translating the instruction sets to something that the new hardware can understand. This results in less accurate emulation and requires a lot more game specific work but takes significantly less processing power.
And for those who want proof... they quite literally say it on their website and go rather in-depth on the topic:
https://www.nintendo.com/us/whatsnew/ask-the-developer-vol-16-nintendo-switch-2-part-4/
View attachment 497198View attachment 497199