Picture supply: Getty Pictures
Solely folks not within the inventory market — or dwelling beneath a rock — are unaware that Nvidia has been a belting inventory to personal long run. We’re speaking a few 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 set to do to Raspberry Pi what the desktop did to Microsoft, the smartphone did to Apple, and the data centre is doing to Nvidia.”
That’s an thrilling thought, particularly with Raspberry Pi’s market cap nonetheless simply £840m (a minnow in as we speak’s world of tech leviathans). What’s extra, as I write as we speak (31 March), the FTSE 250 inventory has skyrocketed 46% greater to 426p.
So, may Raspberry Pi be a tech big within the making? Let’s talk about.
One other sturdy 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 good for varied edge computing makes use of.
Edge computing entails processing knowledge nearer to the place it’s created, somewhat than in a distant cloud server. That’s why extra authentic gear producers (OEMs) are integrating Raspberry Pi tech into their merchandise.
Shareholders can thank as we speak’s 2025 annual report launch for the inventory’s surge. On this, administration stated income jumped 25% yr on yr to $323.2m, because it shipped 7.6m models, up 9% from 2024. Demand was sturdy from the US and China.
In the meantime, adjusted EBITDA rose 25% to $46.4m, greater than beforehand anticipated. It stated this was pushed by “strengthening demand and beneficial unit economics by H2“.
For the primary time, Raspberry Pi bought extra semiconductor units (8.4m models) than boards and modules. CEO Eben Upton stated this signalled its progress in the direction of a “two-franchise business“. It aims to eventually ship “billions” of semiconductor units.
The agency confirmed that sturdy gross sales momentum had continued into the primary months of 2026, with considerably greater full-year income now anticipated.
Nonetheless, a lot of that is all the way down to surging DRAM reminiscence chip prices. Whereas Raspberry Pi expects to go by prices to clients, the chip scarcity is the largest near-term danger right here. It’s limiting administration’s visibility into H2.
Similarities and one massive distinction
So, is that this an Nvidia within the making? Nicely, I see some similarities. Like Nvidia, Raspberry Pi is founder-led and really modern in computing {hardware}.
What I like is its capability to rapidly capitalise on rising tech traits. For instance, its AI HAT+2 board permits clients to run superior AI purposes like giant language fashions on their units. The sting AI alternative seems to be important.
Additionally, by shifting into semiconductors, Raspberry Pi is demonstrating optionality (one other key Nvidia trait). Each even have sturdy followings within the international developer communities.
Then again, 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 on account of surging reminiscence chip costs.
Raspberry Pi is an thrilling firm, but it surely’s too early to inform if it’s a sleeping big. And with the inventory now buying and selling at a lofty 50 occasions ahead earnings, it’s not one I’m seeking to purchase as we speak.
For now, it stays on the watchlist.
