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Shares of Raspberry Pi (LSE:RPI) rocketed 36% yesterday (17 February), leaving all different FTSE 250 shares within the mud. This spectacular single-day surge catapulted it to fourth place within the FTSE 250’s year-to-date efficiency rankings.
Not a nasty day on the workplace for the inventory then. However what triggered the sudden leap?
A wierd rally
For these unfamiliar, Raspberry Pi makes low-cost, mini computer systems which are utilized by fans and engineers worldwide. Whereas initially created by a UK charity to assist individuals be taught laptop programming, 70% of the agency’s gross sales right this moment come from industrial and embedded purposes.
The tech firm went public in June 2024 and the inventory reached 766p by January 2025. Since then although, it’s been all downhill and it was languishing at simply 257p earlier this month. However yesterday the share worth jumped again above 400p.
Why? Properly, regulatory filings yesterday revealed that founder-CEO Eben Upton had purchased 4,684 shares at round 282p. Nevertheless, that alone can’t clarify such an enormous leap as a result of he snapped up 15,314 shares at 260p earlier this month. Then one other 15,072 at 264p a number of days later.
On each events, the share worth didn’t actually budge. So insider shopping for can’t clarify the surge.
AI chatter
Customers have been adapting the AI agent by a cluster of Raspberry Pis, with a great deal of viral movies exhibiting how to do that.
Subsequently, this means that Raspberry Pi has instantly change into an AI meme inventory, pushed greater by social media buzz.
Does this inventory curiosity me?
After all, if plenty of persons are instantly shopping for the agency’s single-board computer systems to run customised AI brokers, then it might take pleasure in a spike in gross sales. In January, the corporate stated adjusted EBITDA for 2025 could be forward of market consensus forecasts, at not lower than $45m.
That will signify greater than 20% year-on-year development, on income of $311m. Nevertheless, administration warned that the worth of LPDDR4 DRAM — the reminiscence chip utilized in many Raspberry Pi merchandise — has risen sharply in latest months, with some main suppliers warning of provide constraints.
This stems from reminiscence producers shifting manufacturing capability to capitalise on booming AI information centre demand.
“There is significant uncertainty as to the timing of a return to more normal DRAM pricing and availability,” the agency warned. “Visibility past H1 2026 is restricted“.
Provided that meme inventory merchants might dump their shares en masse at any time, I’m not all for investing in Raspberry Pi right this moment. Particularly when the inventory is buying and selling at round 50 occasions ahead earnings. That appears far too excessive given the continuing provide chain uncertainty.
Raspberry Pi is a inventory I may be all for shopping for at some point when the smoke clears. However proper now, I see extra engaging alternatives within the FTSE 250 for my portfolio.
