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Solely folks not within the inventory market — or dwelling underneath a rock — are unaware that Nvidia has been a belting inventory to personal long run. We’re speaking a couple of 19,028% return (in US greenback phrases) over the previous decade!
Due to this fact, after I heard the UK’s very personal Raspberry Pi (LSE:RPI) talked about in the identical breath as Nvidia, my ears pricked up. In mid-2024, dealer Peel Hunt wrote: “Edge computing is ready to do to Raspberry Pi what the desktop did to Microsoft, the smartphone did to Apple, and the info centre is doing to Nvidia.”
That’s an thrilling thought, particularly with Raspberry Pi’s market cap nonetheless simply £840m (a minnow in right now’s world of tech leviathans). What’s extra, as I write right now (31 March), the FTSE 250 inventory has skyrocketed 46% larger to 426p.
So, would possibly Raspberry Pi be a tech large within the making? Let’s focus on.
One other robust yr
For these unfamiliar, Raspberry Pi makes single-board computer systems and equipment utilized by hobbyists and industrial companies. The units are low cost, compact, and scalable, making them excellent for varied edge computing makes use of.
Edge computing includes processing information nearer to the place it’s created, relatively than in a distant cloud server. That’s why extra unique gear producers (OEMs) are integrating Raspberry Pi tech into their merchandise.
Shareholders can thank right now’s 2025 annual report launch for the inventory’s surge. On this, administration mentioned income jumped 25% yr on yr to $323.2m, because it shipped 7.6m models, up 9% from 2024. Demand was robust from the US and China.
In the meantime, adjusted EBITDA rose 25% to $46.4m, larger than beforehand anticipated. It mentioned this was pushed by “strengthening demand and beneficial unit economics via H2“.
For the primary time, Raspberry Pi offered extra semiconductor units (8.4m models) than boards and modules. CEO Eben Upton mentioned this signalled its progress in direction of a “two-franchise enterprise“. It goals to finally ship “billions” of semiconductor units.
The agency confirmed that robust gross sales momentum had continued into the primary months of 2026, with considerably larger full-year income now anticipated.
Nevertheless, a lot of that is all the way down to surging DRAM reminiscence chip prices. Whereas Raspberry Pi expects to go via prices to prospects, the chip scarcity is the largest near-term threat right here. It’s limiting administration’s visibility into H2.
Similarities and one large distinction
So, is that this an Nvidia within the making? Properly, I see some similarities. Like Nvidia, Raspberry Pi is founder-led and really modern in computing {hardware}.
What I like is its potential to shortly capitalise on rising tech traits. For instance, its AI HAT+2 board permits prospects to run superior AI functions like giant language fashions on their units. The sting AI alternative seems to be vital.
Additionally, by transferring into semiconductors, Raspberry Pi is demonstrating optionality (one other key Nvidia trait). Each even have robust followings within the world developer communities.
Alternatively, Nvidia’s gross margin of 71.3% is on one other planet to Raspberry Pi’s 24.1%. And Peel Hunt thinks this might shrink to lower than 15% this yr as a result of surging reminiscence chip costs.
Raspberry Pi is an thrilling firm, however it’s too early to inform if it’s a sleeping large. And with the inventory now buying and selling at a lofty 50 instances ahead earnings, it’s not one I’m trying to purchase right now.
For now, it stays on the watchlist.
