While the FTSE 250 has broadly lagged the FTSE 100 in 2026, that headline masks some truly extraordinary individual stories.
For example, Raspberry Pi‘s (LSE:RPI) surged 165% since January. And CMC Markets (LSE:CMCX) is up 141% over the same period. Both are small-cap-turned-mid-cap businesses that have stunned the market with back-to-back earnings upgrades.
But can they really keep climbing from here?
Why Raspberry Pi’s erupted
If you aren’t familiar with Raspberry Pi, it’s the Cambridge-based company behind the credit-card-sized computers beloved by engineers, hobbyists, and educators the world over.
Since listing on the London Stock Exchange in 2024, it’s quietly transformed from a charity-adjacent education project into a serious industrial computing business.
The most recent trading update told a remarkable story. In the first half of 2026, the company expects to sell over 4m units and subsequently upgraded its full-year EBITDA guidance to significantly above the market consensus of $42m.
The driver? A surging wave of demand from OEM customers who are using Raspberry Pi’s technology to build out AI edge computing power as well as industrial automation systems. And with AI-related spending still accelerating, this massive tailwind doesn’t look like slowing.
However, the gravy train might be about to encounter a serious problem. For the most part, Raspberry Pi’s been successfully leveraging its memory stockpiles to continue manufacturing its chips at low cost.
But those stockpiles are starting to run low. And with memory prices skyrocketing across the sector, gross margins could face significant compression risk in the second half of 2026. And after such an impressive bull run for its share price, a sudden deterioration of profitability could spark a painful sell-off.
What about CMC Markets?
CMC Markets is an online financial trading platform and is in a very different situation to Raspberry Pi. The firm allows both retail and institutional investors to engage with contracts for difference (CfD), spread betting, and other stockbroking services.
The firm makes its money by charging transaction fees, which ties revenue to trading activity. But in 2026, that isn’t what’s caused the stock to go parabolic. Instead, this newfound momentum actually stems from new business partnerships.
Third-party operators can now tap in and piggyback CMC’s platform instead of building out their own trading infrastructure, giving CMC a rapidly-expanding, low-effort, high-margin revenue stream.
Subsequently, its latest trading update revealed a massive guidance upgrade for its 2027 fiscal year (ending in March). Specifically, net operating income is now expected to be at least £550m versus earlier guidance of £460m-£480m.
Is now the time to buy?
Like Raspberry Pi, CMC Markets has its weak spots. Structurally, the company remains highly dependent on trading activity to generate transaction fees. With the stock market becoming increasingly volatile, the company’s currently enjoying the peak of this cycle. But when market conditions eventually cool, growth could slow considerably, or potentially even reverse.
Much like memory shortages, it’s a real risk that investors must consider carefully. Having said that, with impressive long-term growth potential, both companies could be worth investigating further today. And they’re not the only opportunity that’s caught my eye right now…
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Zaven Boyrazian does not hold any positions in the companies mentioned.
