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People who are only interested in the stock market – or live under a rock – don’t know that Nvidia it was a solid stock to own for a long time. We’re talking a 19,028% return (in US dollar terms) over the last ten years!
So, when I heard the UK itself Raspberry Pi (LSE:RPI) being mentioned in the same breath as Nvidia, my ears perked up. Mid 2024, seller Peel Hunt wrote: “Edge computing is set to do on the Raspberry Pi what the desktop was done on Microsoftthe smartphone does an appleand the data center does it at Nvidia.”
That’s an interesting thought, especially as the Raspberry Pi market is still just £840m (a minnow in today’s world of tech leviathans). Furthermore, as I write today (31 March), the FTSE 250 the stock has gone up 46% up 426p.
So, could the Raspberry Pi be a tech giant in the making? Let’s talk.
Another strong year
For those unfamiliar, Raspberry Pi makes single board computers and accessories for use by hobbyists and industrial businesses. The devices are cheap, compact, and scalable, making them ideal for a variety of computing applications.
Edge computing involves processing data close to where it is created, instead of on a remote cloud server. That’s why original equipment manufacturers (OEMs) are incorporating Raspberry Pi technology into their products.
Shareholders can thank today’s 2025 report for the stock’s growth. This time, management said revenue jumped 25% year-on-year to $323.2m, as it shipped 7.6m units, up 9% from 2024. Demand has been strong from the US and China.
Meanwhile, adjusted EBITDA rose 25% to $46.4m, higher than previously expected. He said this was done bystrengthening demand and unit economics with H2“.
For the first time, Raspberry Pi sold more semiconductors (8.4m units) than boards and modules. CEO Eben Upton said this marks its progress towards “a business with two franchises“. It intends to eventually send “billions” of semiconductor devices.
The company confirmed that strong sales momentum continued in the first months of 2026, and full-year revenue is expected to be significantly higher.
However, much of this is down to the rising cost of DRAM memory. While the Raspberry Pi expects to pass costs on to customers, chip shortages are the biggest immediate threat here. Limits management visibility to H2.
Similarities and one major difference
So, is this Nvidia in the making? Well, I see some similarities. Like Nvidia, the Raspberry Pi is inventor-led and the most innovative in computer hardware.
What I love is its ability to quickly capitalize on emerging technology trends. For example, its AI HAT+2 board enables customers to run advanced AI applications such as large language models on their devices. The opportunity for AI at the edge seems significant.
Also, by moving to semiconductors, the Raspberry Pi shows a choice (another key for Nvidia). Both also have a strong following in the world’s engineering communities.
On the other hand, Nvidia’s gross of 71.3% is on another planet to Raspberry Pi’s 24.1%. And Peel Hunt thinks this could drop to less than 15% this year due to rising memory chip prices.
Raspberry Pi is an interesting company, but it’s too early to tell if it’s a sleeping giant. And with the stock now trading at 50 times earnings, it’s not one I’m looking to buy today.
For now, it’s still on the watch list.
