That means a £5,000 investment just one month ago would be worth £9,300 today — a huge £4,300 profit.

So what’s driving the outsized growth and more importantly: have new investors missed the boat or is it still worth considering?

An up-and-coming tech gem

Rasperry Pi is a newly listed FTSE 250 tech share that designs low‑cost single‑board computers and chips used in everything from hobbyist projects to industrial kit.

Based in Cambridge, it sells to educators, enthusiasts, and professional customers in areas like industrial internet‑of‑things and embedded systems.

In simple terms, it makes the tiny brains that sit inside lots of gadgets and control systems.

The latest full‑year results, for 2025, showed the business still growing briskly. Sales rose 22% while net profit almost doubled.

Management highlighted a 9% rise in shipments to 7.8m units and a 25% jump in EBITDA, helped by better margins and a richer product mix. They also pointed to particularly strong demand from the US and China and a growing semiconductor division, which now sells more chips than boards.

Sounds like a business on track for success. But what do the experts think?

Broker analysis

After such a rally, City broker consensus gives it a Hold rating with a 12‑month target of around 390p — a 32% decrease from today’s price.

That may look pessimistic but is simply the result of the price rallying far ahead of expectations.

Still, many analysts give it a Buy rating, with the highest eyeing a price target around 576p. Big banks including HSBC and Jefferies have started and updated coverage since the IPO, reflecting how quickly the investment story is evolving.

Recent numbers and valuation

Here’s a snapshot of the current set‑up.

• 2025 revenue: $323.2m
• Earnings per share (EPS): 8p
• Net margin: around 6.68%
• Market value: roughly £1.14bn

But valuation is my key concern. Some estimates put the shares on a forward price‑to‑earnings ratio (P/E) above 68 times — extremely high by normal standards. 

That means investors are banking on excessive earnings growth. If the company fails to deliver, it could suffer heavy capital outflow and a share price collapse.

So the key risks that new investors should consider include:

• Cyclical demand for computer hardware and chips
• Exposure to global supply chains and major export markets such as the US and China
• Execution risk as the company leans further into higher‑margin semiconductors

Long story short, this isn’t a stable income pick — it’s your typical high risk/high reward tech play.

The bottom line?

For growth-hungry investors with a high risk appetite, Raspberry Pi looks worth considering. If you believe it can keep growing sales and profits strongly for many years, the premium price might prove justified.

However, if you prefer fairer-value, dividend‑paying names, it may not be for you. However, it’s certainly an exciting development for the UK tech industry and one I’ll be keeping a close eye on.

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Usually, such sudden share price surges are triggered by the announcement of a potential acquisition offer. But that’s not what happened this time around. Instead, this massive jump started the day before the company released its full-year results for 2025, and then continued the day after.

What was it that got investors so excited? What was in the report that kept the momentum going the next day? And could investors be looking at the start of a Rolls-Royce-style price rally over the coming years?

What’s going on with Raspberry Pi?

To understand what happened last month, we actually need to go back to February. Viral social media videos emerged showing clusters of Raspberry Pi boards running customised AI agents. In simple terms, these are special programmes that use AI to automate certain tasks.

With the company having already previously guided that it would beat adjusted EBITDA analyst expectations in January, and the CEO subsequently starting to buy shares in February, investors were going into these full-year results with a lot of excitement, driving up the stock price even before the report was released.

The numbers then confirmed that this excitement wasn’t misplaced:

• Revenue jumped 25% from $259.5m to $323.2m.
• Adjusted EBITDA shot up 25% from $37.2m to $46.4m.
• Pre-tax profits expanded by 63% from $16.3m to $26.5m.

But it wasn’t just last year’s figures that got the market excited. Even with rising memory costs and emerging supply chain challenges, management confirmed it expects revenue to climb “materially higher”, suggesting the gravy train could only just be getting started.

So is this FTSE 250 stock potentially the next Rolls-Royce?

Bull versus bear

The tremendous returns generated by Rolls-Royce shares came from a new management team streamlining the business and unlocking exceptional operating leverage. The result was a restoration of profit margins and a massive resurgence of free cash flow that delivered close to a 1,200% return for shareholders over three years.

Raspberry Pi’s now also showing signs of its ability to deliver impressive operating leverage. However, the firm’s in quite a different situation and may have a harder time than Rolls-Royce in delivering a 12x return.

Rolls-Royce leveraged long-cycle contracts in the established civil and defence aerospace sector. By comparison, Raspberry Pi’s growth is dependent on AI adoption for edge computing within primarily the industrials sector.

It’s a much younger market that’s far more challenging to forecast, especially as we enter a period of higher memory costs that could deter or delay spending due to industrial giants pulling back on non-crucial spending.

All of this is to say that the bull case for Raspberry Pi is real, but investors wanting to hop aboard should be braced for some potentially wild volatility.

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Therefore, when I heard the UK’s very own Raspberry Pi (LSE:RPI) mentioned in the same breath as Nvidia, my ears pricked up. In mid-2024, broker 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 exciting thought, especially with Raspberry Pi’s market cap still just £840m (a minnow in today’s world of tech leviathans). What’s more, as I write today (31 March), the FTSE 250 stock has skyrocketed 46% higher to 426p.

So, might Raspberry Pi be a tech giant in the making? Let’s discuss.

Another strong year

For those unfamiliar, Raspberry Pi makes single-board computers and accessories used by hobbyists and industrial businesses. The devices are cheap, compact, and scalable, making them perfect for various edge computing uses.

Edge computing involves processing data closer to where it’s created, rather than in a distant cloud server. That’s why more original equipment manufacturers (OEMs) are integrating Raspberry Pi tech into their products.

Shareholders can thank today’s 2025 annual report release for the stock’s surge. In this, management said revenue jumped 25% year on year to $323.2m, as it shipped 7.6m units, up 9% from 2024. Demand was strong from the US and China.

Meanwhile, adjusted EBITDA rose 25% to $46.4m, higher than previously expected. It said this was driven by “strengthening demand and favourable unit economics through H2“.

For the first time, Raspberry Pi sold more semiconductor devices (8.4m units) than boards and modules. CEO Eben Upton said this signalled its progress towards a “two-franchise business“. It aims to eventually ship “billions” of semiconductor devices.

The firm confirmed that strong sales momentum had continued into the first months of 2026, with significantly higher full-year revenue now expected.

However, much of this is down to surging DRAM memory chip costs. While Raspberry Pi expects to pass through costs to customers, the chip shortage is the biggest near-term risk here. It’s limiting management’s visibility into H2.

Similarities and one big difference

So, is this an Nvidia in the making? Well, I see some similarities. Like Nvidia, Raspberry Pi is founder-led and very innovative in computing hardware.

What I like is its ability to quickly capitalise on emerging tech trends. For example, its AI HAT+2 board enables customers to run advanced AI applications like large language models on their devices. The edge AI opportunity appears to be significant.

Also, by moving into semiconductors, Raspberry Pi is demonstrating optionality (another key Nvidia trait). Both also have strong followings in the global developer communities.

On the other hand, Nvidia’s gross margin of 71.3% is on another planet to Raspberry Pi’s 24.1%. And Peel Hunt thinks this could shrink to less than 15% this year due to surging memory chip prices.

Raspberry Pi is an exciting company, but it’s too early to tell if it’s a sleeping giant. And with the stock now trading at a lofty 50 times forward earnings, it’s not one I’m looking to buy today.

For now, it remains on the watchlist.

The post Is Raspberry Pi the next Nvidia stock? appeared first on The Motley Fool UK.

The update was headlined “Strong 25% EBITDA growth ahead of expectations, increased unit volumes and continued product and platform expansion.”

And CEO Eben Upton said: “We have entered FY 2026 with strong momentum, underpinned by growing demand and continued progress in direct customer engagements. Combined with strategic hiring, rapid uptake of new products, and a channel whose capabilities are well aligned with the opportunities ahead, I am more confident than ever in our long-term growth trajectory.“

British tech hopeful

Investors had high hopes for Raspberry Pi as a contender in the AI technology stakes. Its tiny computers must be ideal for hiding in various nooks and crannies in AI-driven vehicles, robots, and all those other devices, right?

But since the company’s initial public offering in June 2024, it’s been a bit of a disappointment. On Monday (30 March), the share price closed at 292p. That was barely above its initial offer price of 280p.

But then came this sparkling set of 2025 results. And with the shares breaking above 400p at the time of writing, first-day investors are now sitting on a gain of around 45% in less than two years.

What 2025 brought

The headline 25% rise in adjusted EBITDA beat expectations. And it led through to a 35% boost for earnings per share. Net cash ended the year down at $28.1m, from $45.8m a year prior. But that was still better than expected, “after paying down $52.2 million of extended supplier payables over the year“.

We also saw what looks like something of a technical milestone. The company sold 8.4m semiconductor devices in the year. And this is the first time semiconductor volumes have beaten sales of boards and finished modules.

Global demand has meant DRAM memory chips are still a bit of a supply bottleneck. Raspberry Pi doesn’t expect that to affect the first half of 2026 too badly, but it does say “the DRAM environment limits second-half visibility“. But strong 2025 sales do seem to have continued into the current year, at least so far.

What to do?

So is this the turnaround that UK tech growth investors have been looking for? Is Raspberry Pi set on a course to rival Nvidia at the smaller-processor end of the AI market?

Nvidia defintely has the edge in valuation terms. At least, that is, on a short-term price-to-earnings (P/E) basis. Forecasts put the US giant on a forward P/E ratio of only 20 after its recent share price decline. Raspberry Pi, meanwhile, has a forecast multiple more than twice that at 47.

Still, these are very early days — and the P/E isn’t always useful at such times. Does Raspberry Pi have the potential to make it worth considering for long-term growth investors? I certainly think so.

The post Why did Raspberry Pi shares just jump 35%? appeared first on The Motley Fool UK.

To put that mind-boggling figure into context, any investor who put £5k into Nvidia back then and held on for the ride would have over £1.5m today. Actually, I calculate it would be nearer £1.9m because the pound has lost value against the dollar since 2011.

Of course, in reality, most investors would never hold a stock this long. It takes a lot of courage to keep holding your winners, year after year. Someone who gets anxious when a stock becomes pricey would have sold Nvidia many moons ago.

Blowing a raspberry to other FTSE 250 stocks

Unfortunately, investors don’t have many UK tech stocks to choose from. But Raspberry Pi (LSE:RPI) is one that has been touted as a potential domestic tech giant in the making.

Could this be another Nvidia-type stock to mint millionaires?

Well, looking at the recent recent share price performance, it has certainly made some investors a lot of money this month. Since the first week of February, this FTSE 250 stock has soared 77%.

This makes it the best-performing mid-cap share in 2026 so far. Yet even after the sudden rise, it’s down 30% over the past year.

Similarities

Looking at the company, I do see some similarities to Nvidia. The most obvious is that the firm makes computing hardware, specifically low-cost single-board computers. Think credit-card sized computers, microcontrollers, and accessories that are used by schools, hobbyists, and for industrial control systems.

Both firms are also run by founders — Eben Upton at Raspberry Pi and Jensen Huang at Nvidia. And the companies are very innovative in their own respective tech fields.

Furthermore, the UK firm’s products are being deployed across various industries. This reminds me of Nvidia, whose GPUs are used to power gaming graphics, AI large language models, self-driving cars, humanoid robots, and much else.

Below are the markets in which Raspberry Pi’s products can be found.

Speaking of AI, the stock has surged recently due to the technology. Clusters of its cheap mini-computers are being used for certain AI projects. For example, its new Raspberry Pi AI HAT+ 2 product offers the capability to run generative AI models on devices.

Key difference

On the other hand, the two firms are worlds apart. And I don’t just mean in size, with Nvidia the world’s largest listed company versus Raspberry Pi’s modest £900m market cap.

No, Nvidia is at the heart of the global AI revolution, while Raspberry Pi is quite literally at the edge. This year, the US chip giant’s expected to growth revenue 54% and earnings over 65%. In contrast, Raspberry Pi’s top-line growth is forecast at 15%, with earnings dipping lower.

So, despite being infinitely larger, Nvidia is also growing much faster. To become a tech giant, Raspberry Pi needs to be growing a lot faster than it is today.

While sales might accelerate in future, it’s currently facing supply chain risks, which threaten growth.

Meanwhile, Nvidia’s contending with rising competition from AMD and Broadcom. However, with the stock trading at 30 times forward earnings versus Raspberry Pi’s 55, I think Nvidia is the superior growth stock and worth considering today.

The post Up 77% in 3 weeks, is Raspberry Pi stock the next Nvidia? appeared first on The Motley Fool UK.

Increased chatter

A key driver of the recent surge has been growing excitement that devices made by Raspberry Pi could become useful hardware for running lightweight AI models locally, rather than relying on cloud servers.

Enthusiasm has spread among developers after demonstrations showed that certain open-source AI agents and small language models can run on the company’s low-cost, single-board computers. This created the perception that Raspberry Pi could play a larger role in the AI build-out than previously thought.

Further to this, confirmation came through that CEO Eben Upton bought ‌stock in the company. It only amounted to £13,224, but was another sign that the management team believe in the future of the business, along with the potential indication that the stock’s undervalued (hence why the CEO’s buying).

Tempering excitement

The move has certainly put the stock back on investors’ radar, but I feel we need to take a breath. On the hardware side, it’s important to note that we haven’t yet seen any concrete evidence of a large commercial demand shift. Sure, the products are cheaper than competitors’, but price isn’t the only factor in the decision-making process for large buyers.

The CEO’s purchase is small relative to the business’s market-cap (£800m). I don’t really see this as a huge pledge of support from the CEO. If it were 10 times the size, it’s a different story!

Interestingly, the business commented on the share price surge saying: “There’s nothing from ​the company side beyond what’s already ​in the public domain”. To me, this highlights that the move’s based on speculation, rather than anything concrete.

The AI race

I don’t see the company as the next Nvidia. I do get the argument that if running AI locally on low-powered devices takes off, we could see a surge in demand at Raspberry Pi, as we did with GPUs for Nvidia. However, Raspberry Pi doesn’t have the same level of hardware, software power or scale as Nvidia has (or had a few years back).

In terms of share price performance, I think Raspberry Pi can continue to do well this year. However, investors will want to start to see financial performance improve, to show that speculation around demand is filtering through to revenue. I’m not going to rule out strong stock gains in a similar way we saw with Nvidia in the past, but we’ll certainly need some evidence to convince more people to invest.

On that basis, I’m putting the stock on my watchlist, but will be holding off investing right now.

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Now, I’m sitting on a pile of cash at the moment and looking for investment opportunities. Should I buy shares in this under-the-radar British computer company? Let’s discuss.

What is it?

It’s been a while since I’ve covered Raspberry Pi. In fact, I haven’t written about it since shortly after its Initial Public Offering (IPO) in mid-2024.

As a reminder, the company designs and develops high-performance, low-cost single-board computers (SBCs). These are tiny, credit-card-sized computers built on a single circuit board that have a range of applications and are often used in schools, universities, and laboratories.

Since its IPO, the company’s share price has been up and down. But mostly down.

So, I didn’t feel like I was missing out on anything not owning the stock. Until recently…

Because in the last week or so, the share price has gone parabolic.

Why is the share price surging?

There are a couple of factors behind this share price spike. The first factor was a stock purchase from CEO Eben Upton.

On Monday (16 February), it came to light that he’d bought 4,684 Raspberry Pi shares at a price of £2.82 per share. This deal was worth about £13,200.

Note that Upton has bought stock on a number of occasions this year. I calculate that he’s spent around £150k on shares – a significant amount of money.

The second factor is talk online that the company could be a major beneficiary of the AI boom. You see, people have recently been using the company’s computers (which can be bought for around £40) to run an AI virtual assistant called OpenClaw.

This is like a personal AI agent that can be customised. It can access your emails, text messages, and banking apps, and complete complex tasks.

There are now tons of videos online about how to run OpenClaw on a Raspberry Pi computer. So, this has created a lot of investor interest.

You could also say there’s been a bit of ‘meme stock’ price action here. In recent days, a lot of hot money has flowed into the stock on the back of chatter on social media.

Should I buy now?

Will I buy the stock? Not right now.

I do think there’s potential for strong revenue growth in the years ahead. Especially if the company’s products remain in focus on social media.

However, one issue that concerns me is memory shortages/prices. In a recent trading update, the company said that the cost of the LPDDR4 DRAM used in many of its products has “increased rapidly” in recent months, with some major suppliers now indicating limitations of supply at high densities.

This issue could potentially hit earnings. It could also constrain growth.

Note that the company said that it has sufficient LPDDR4 inventory for H1 2026. But looking beyond that, there’s uncertainty.

Another issue is the valuation. After the recent share price spike, the forward-looking price-to-earnings (P/E) ratio is about 50.

That’s high for a hardware company. It doesn’t leave any room for error.

So, I’m going to leave the stock on my watchlist for now. But other Fools may be more bullish.

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Not a bad day at the office for the stock then. But what caused the sudden jump?

A strange rally

For those unfamiliar, Raspberry Pi makes low-cost, mini computers that are used by enthusiasts and engineers worldwide. While originally created by a UK charity to help people learn computer programming, 70% of the firm’s sales today come from industrial and embedded applications.

The tech company went public in June 2024 and the stock reached 766p by January 2025. Since then though, it’s been all downhill and it was languishing at just 257p earlier this month. But yesterday the share price jumped back above 400p.

Why? Well, regulatory filings yesterday revealed that founder-CEO Eben Upton had bought 4,684 shares at around 282p. However, that alone can’t explain such a huge jump because he snapped up 15,314 shares at 260p earlier this month. Then another 15,072 at 264p a few days later.

On both occasions, the share price didn’t really budge. So insider buying can’t explain the surge.

Moreover, there was no news out from the company, which isn’t due to report 2025 earnings until March. Indeed, when asked about it, Raspberry Pi said: “There’s nothing from the company side beyond what’s already in the public domain.”

AI chatter

According to The Telegraph, the reason appears to be related to AI. You see, the company’s micro-computers can be used to run OpenClaw, a popular AI chatbot. It connects to messaging apps like WhatsApp and can do tasks such as managing emails and calendars.

Users have been adapting the AI agent through a cluster of Raspberry Pis, with loads of viral videos showing how to do this.

Therefore, this suggests that Raspberry Pi has suddenly become an AI meme stock, driven higher by social media buzz.

Does this stock interest me?

Of course, if lots of people are suddenly buying the firm’s single-board computers to run customised AI agents, then it could enjoy a spike in sales. In January, the company said adjusted EBITDA for 2025 would be ahead of market consensus forecasts, at not less than $45m.

That would represent more than 20% year-on-year growth, on revenue of $311m. However, management warned that the price of LPDDR4 DRAM — the memory chip used in many Raspberry Pi products — has risen sharply in recent months, with some major suppliers warning of supply constraints.

This stems from memory manufacturers shifting production capacity to capitalise on booming AI data centre demand.

“There is significant uncertainty as to the timing of a return to more normal DRAM pricing and availability,” the firm warned. “Visibility beyond H1 2026 is limited“.

Given that meme stock traders could dump their shares en masse at any time, I’m not interested in investing in Raspberry Pi today. Especially when the stock is trading at around 50 times forward earnings. That seems far too high given the ongoing supply chain uncertainty.

Raspberry Pi is a stock I might be interested in buying one day when the smoke clears. But right now, I see more attractive opportunities in the FTSE 250 for my portfolio.

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Only listed via its IPO in June 2024, the stock more than doubled in value (up 130% to be precise) in just a couple of months. The share price has been falling since. And investors can now pick up a share for 60% cheaper than at its all-time high. The price has just fallen below the £3 mark for the first time.

Before getting into whether a brilliant bargain is on offer here, it’s worth pointing out that Raspberry Pi isn’t exactly a household name. So let’s start with a little detail on this intriguing technology firm.

Hobbyist computers

Raspberry Pi produces and sells what might be called ‘DIY computers’. These devices are both small (at about the size of a credit card) and cheap (with some models costing as little as £7). They can be used for hobbyist electrical projects or even as a lightweight personal computer.

While Raspberry Pi first made its name for home use, a majority of its customers are now businesses. That’s because its products offer a wide range of computing solutions. These tiny computers are so versatile that they can be applied to many use cases.

These tiny computers can be made into custom security systems, for instance. All that’s needed is a little knowhow and a camera to hook it up to.

Raspberry Pi has a market cap of £589m which puts it into London’s smaller index, the FTSE 250. This is a business that’s still growing too, with forecasts for 2026 expecting earnings and sales to continue rising.

What happened?

The future success of this company may hinge on artificial intelligence. Raspberry Pi is considered something of a pick-and-shovel play. This is one reason why the shares shot up in value earlier in the year.

The subsequent fall was partly caused by a rough half-year report in which earnings fell. Other issues like increased memory costs (because of the demand from AI) and a downgrade in analyst ratings didn’t help either.

As a growth stock, there’s a lot of future growth in earnings baked into the price. The price-to-earnings ratio of 80 is one of the highest on the FTSE 250. That suggests we could be looking at an expensive buy with this one.

On the other hand, high P/E growth stocks in the tech sector have made some of the best investments this century. For an investor who’s aware of the risks of stocks with such eye-watering valuations, I’d say this is one to consider. It might even turn out to be a bargain.

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Nvidia was founded in Silicon Valley on the West Coast of the US. While the UK has some world-class research and innovation hubs, particularly in AI and the life sciences, it doesn’t have anything like Silicon Valley.

Therefore, the London Stock Exchange isn’t where one might expect to find the next potential Nvidia-like stock. Yet, some have talked up British firm Raspberry Pi (LSE:RPI) as having the potential to turn into a large homegrown tech business.

Could this FTSE 250 stock also produce explosive returns in future?

A volatile start to public life

For those unfamiliar, Raspberry Pi makes affordable single-board computers that are popular with hobbyists, educators, and Internet of Things (IoT) builders. 

After going public in June 2024, its shares more than doubled by January 2025. However, since then, they’ve crashed from 766p to just 333p.

Yet, this slump doesn’t necessarily mean that there’s anything wrong with the underlying business. It’s more that the stock got ahead of itself, which often happens.

After all, Nvidia itself has dropped by more than 50% on multiple occasions.

Rising use cases

Nvidia started out building GPUs for gamers, which was quite a niche market. Then its products were used for other things, including crypto mining and AI. 

In this sense, I do see some similarities with Raspberry Pi. Its products also started out with hobbyists and tinkerers. But they’re been used for an increasing number of industrial applications, increasing the overall market opportunity significantly. 

Lumpiness

Looking at Nvidia’s consistently incredible results since late 2022, it’s easy to forget that the electronics/chip industry is inherently cyclical. 

But we’re quickly reminded of this risk by Raspberry Pi’s financial results. In H1, unit volumes were flat after lapping a strong H1 2024. Revenue declined 6% to $135.5m, while adjusted EBITDA of $19.4m was down 7% but up 19% from H2 2024.

These mixed numbers tell us this is no eye-popping Nvidia-like growth story.

Interestingly though, Raspberry Pi’s semiconductor shipments hit 4.5m units in H1, overtaking board volumes for the first time. The chips are powering embedded industrial devices worldwide.

CEO Eben Upton sees a big runway of growth ahead: “We have an aspiration over the next decade to reach a point where the semiconductor side of our business…is making an equal contribution to our business alongside the electronic products.”

However, these chips sell for about $0.50 each versus $50 for the boards. So they’re not really moving the financial needle yet. 

Moats

Nvidia’s key competitive advantage (moat) is CUDA, its software ecosystem that locks developers in and keeps competitors at bay. While Raspberry Pi has a strong brand and growing community, it’s still primarily hardware-driven today. So I don’t see it as the next Nvidia.

That said, the firm’s net income’s forecast to rise to $35m by 2027, up from $19.3m last year. This puts the stock on a forward price-to-earnings ratio of around 24. That’s not an outrageous valuation. 

Therefore, adventurous investors might still want to take a closer look at this interesting UK tech stock at 333p.

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