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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, 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 at this time’s world of tech leviathans). What’s extra, as I write at this time (31 March), the FTSE 250 inventory has skyrocketed 46% increased to 426p.
So, would possibly Raspberry Pi be a tech big within the making? Let’s talk about.
One other robust 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 excellent for numerous edge computing makes use of.
Edge computing entails processing information nearer to the place it’s created, reasonably than in a distant cloud server. That’s why extra unique tools producers (OEMs) are integrating Raspberry Pi tech into their merchandise.
Shareholders can thank at this time’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 robust from the US and China.
In the meantime, adjusted EBITDA rose 25% to $46.4m, increased than beforehand anticipated. It mentioned this was pushed by “strengthening demand and beneficial unit economics by way of 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 the direction of a “two-franchise enterprise“. It goals to ultimately ship “billions” of semiconductor gadgets.
The agency confirmed that robust gross sales momentum had continued into the primary months of 2026, with considerably increased 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 cross by way of prices to clients, the chip scarcity is the most important near-term danger right here. It’s limiting administration’s visibility into H2.
Similarities and one huge distinction
So, is that this an Nvidia within the making? Properly, I see some similarities. Like Nvidia, Raspberry Pi is founder-led and really progressive in computing {hardware}.
What I like is its skill to rapidly capitalise on rising tech tendencies. For instance, its AI HAT+2 board allows clients to run superior AI functions like massive language fashions on their gadgets. 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 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 attributable to 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 instances ahead earnings, it’s not one I’m seeking to purchase at this time.
For now, it stays on the watchlist.
