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Only people not interested in the stock market — or living under a rock — are unaware that Nvidia has been a belting stock to own long term. We’re talking about a 19,028% return (in US dollar terms) over the past decade!
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.
