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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 few 19,028% return (in US greenback phrases) over the previous decade!
Due to this fact, once 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 big within the making? Let’s focus on.
One other sturdy 12 months
For these unfamiliar, Raspberry Pi makes single-board computer systems and equipment utilized by hobbyists and industrial companies. The gadgets are low cost, compact, and scalable, making them good for numerous edge computing makes use of.
Edge computing includes processing knowledge nearer to the place it’s created, quite than in a distant cloud server. That’s why extra authentic tools 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% 12 months on 12 months 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, larger than beforehand anticipated. It mentioned this was pushed by “strengthening demand and beneficial unit economics via H2“.
For the primary time, Raspberry Pi bought extra semiconductor gadgets (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 gadgets.
The agency confirmed that sturdy 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 most important near-term danger 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 revolutionary in computing {hardware}.
What I like is its capability to shortly capitalise on rising tech tendencies. For instance, its AI HAT+2 board permits prospects to run superior AI functions like giant language fashions on their gadgets. 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.
However, 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 12 months resulting from surging reminiscence chip costs.
Raspberry Pi is an thrilling firm, nevertheless it’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 right now.
For now, it stays on the watchlist.
