Image credit: Raspberry Pi
Welcome back to our Stock Pitch series. Graham recently highlighted a small cap with a distinctive niche offering and a network of more than 3m registered users.
Today I want to look at another company that also has a strong franchise and an enthusiast community with over 3m members.
Shares in small, cheap computer specialist Raspberry PI Holdings (LON:RPI) rocketed 67% higher last week after the company reported a 63% rise in pre-tax profit for 2025.
If recent 20%+ sales growth can be maintained, I reckon this business could be generating £1bn in annual sales within six years.
In this Stock Pitch I’m going to consider whether the numbers stack up for an investment today and explain why I think Raspberry Pi could be a true tech compounder - like ARM.
Disclosure: at the time of publication, Roland has no position in Raspberry Pi.
Share price at the time of publication: 465p
Market cap: £891m
The Pitch
Cambridge-based Raspberry Pi has its roots in an educational charity founded in 2008 to encourage kids to learn coding. The listed business whose shares we can buy was created by the charity in 2012 to produce ultra-cheap, single board computers built around ARM chips for educational use.
Raspberry Pi has since expanded to have a global reach and a much broader customer base. Revenue reached $323m last year and sales to industrial customers now outweigh those to education and hobbyist customers by three-to-one:
The product range is both broader and a little more expensive than it used to be. But the core DNA hasn’t changed all that much: Raspberry Pi blends expertise in hardware and software to produce affordable devices that can be used to address thousands of potential applications.
Demand could receive a further structural boost by the rapid growth of local AI services. Rather than relying on cloud-based behemoths for all services, there’s a growing trend towards hosting specialist AI tools on local ‘edge’ devices. This avoids cloud costs and dependencies and can address potential data security concerns.
Raspberry Pi’s new AI HAT+ 2 product is designed for exactly this purpose:
Post year-end launch of…
