That’s a quarterly gain of 142.2% from a business most people have heard of for an entirely different reason. But after a brutal week, is the Raspberry Pi (LSE: RPI) story starting to crack?

Crunching the numbers

The longer-term numbers are extraordinary. As I write (25 June), the shares sit at 796.5p, up 166.7% since the start of January. But zoom in and the picture gets a bit messier:

• Year-to-date: +166.7%
• 3 months: +142.2%
• 6 months: +139.1%
• 1 week: -12.8%

That combination of a huge multi-month rally next to a sharp double-digit fall this week might be telling an interesting story. So what’s actually behind both the surge and the mini reversal?

Blowing Raspberries?

The Cambridge-based designer produces single-board computers, compute modules, and semiconductors. It’s best known for the tiny, affordable computers beloved by hobbyists, schools, and increasingly industrial customers with the rise of artificial intelligence (AI).

For the first time, semiconductor device volumes exceeded those of boards and modules — a milestone on our journey towards a two-franchise business.

Eben Upton, Chief Executive, Raspberry Pi Holdings

The valuation is the real talking point here. With the shares trading on a price-to-earnings (P/E) ratio of 92.5 and a market-cap of £1.5bn, at the time of writing, the market’s pricing in years of continued hypergrowth.

So is there still value here or is the stock overheating on AI mania right now?

What are the risks?

A double-digit share price drop in a single week, sitting on top of a near-tripling year-to-date, is a textbook sign of a value trap building.

This is a relatively small, thinly-traded stock, and that combination of a rich valuation and high volatility means swings in either direction can be swift and large. The shares are still some way below their 52-week high of 1,082p, which only adds to the sense that sentiment here can shift quickly.

There’s also some concentration risk worth highlighting. A meaningful chunk of revenue comes from industrial and embedded customers, and any slowdown in chip demand, or a single large customer pulling back, could hit earnings hard.

My verdict

This is a really interesting company that has really come to the fore as interest around AI has reached fever pitch. However, I think the valuation has run well ahead of the fundamentals, and this week’s sharp fall may be the market starting to acknowledge that.

I’m not currently invested, and I’d want to see some further evidence of stabilised demand before buying in. For now, it’s one I’m watching closely rather than acting on.

Should you invest £5,000 in Raspberry Pi Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Raspberry Pi Plc made the list?

Ken Hall does not hold any positions in the companies mentioned.

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Just to put that into money terms, a £500 investment near the start of 2026 is now worth close to £1,370.50. But even at today’s now-elevated share price, anyone with £500 to spare can still snap up 60 shares right now. The question now is, can Raspberry Pi surge again?

From hobbyist gadget to AI infrastructure

As a quick reminder, Raspberry Pi designs and manufactures low-cost, high-performance, single-board computers and microcontroller chips, selling into three markets:

• Industrial & Embedded.
• Enthusiasts & Educators.
• Semiconductors (growing rapidly).

So why has the share price gone parabolic? The simple answer is that Raspberry Pi has found itself in an unexpected sweet spot within the AI boom.

As hyperscalers and enterprises race to build out AI infrastructure, demand has surged for affordable, programmable edge computing hardware. Raspberry Pi’s boards, which already have an established reputation among engineers worldwide, have become a go-to solution for developers prototyping and deploying AI applications on a budget.

The full-year 2025 results published in March confirmed the scale of the opportunity. Revenue rose 25% to $323.2m, pre-tax profits jumped 63% to $26.5m, and earnings per share surged 73%.

Needless to say, those are some pretty impressive figures. And it seems that management agrees, given it’s now raised its full-year guidance for 2026.

The case for buying today

Raspberry Pi’s evolving from a single-product hardware business into a two-franchise model. Its RP2040 and RP2350 microcontroller chips from its Semiconductor division shipped 8.4 million units in 2025. That’s a 47% increase year on year. And for the first time that exceeded board and module shipments.

The US market’s also growing fast, jumping 56% in 2025, partly because Raspberry Pi’s exclusively UK-manufactured products carry lower tariffs than China-manufactured rivals under the new global trade regime. And that structural advantage is likely why the average consensus among institutional analysts is to Buy shares today.

However, despite this optimism, there are some potential red flags to consider.

While Buy recommendations might be floating about, the share price forecasts are far less bullish, with the average price target currently sitting at 479.2p per share. That’s almost half where the stock’s trading today, signalling a pretty lofty valuation.

Seeing a high-quality growth stock trade at a premium isn’t unusual. However, it does set the stage for potentially extreme volatility if something goes wrong. And sadly, that’s a real possibility.

Memory prices have surged on the back of AI-driven demand, applying enormous pressure on margins across the sector. So far, Raspberry Pi’s been cushioned from this impact by drawing down on its existing inventory stockpiles. But once those are depleted, the group’s unit economics could come under massive pressure as we move towards 2027.

So what’s the verdict?

Raspberry Pi’s one of the most exciting growth stocks to emerge from the UK in years. But at today’s valuation, this isn’t a stock for the faint-hearted. And personally, the risk-to-reward ratio doesn’t look very tempting. But luckily there are lots of other growth opportunities for me to explore…

Should you invest £5,000 in Raspberry Pi Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Raspberry Pi Plc made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post £500 buys 60 shares in this red-hot growth stock! appeared first on The Twelfth Magpie.

Here’s how the share’s been doing

Since the start of the year, Raspberry Pi shares have soared.

Specifically, they are up by 185%.

So, £100 put in at the beginning of the year ought to be worth around £285. Someone who had the foresight (and cash) to put in £20k would now be sitting on a holding worth £57k.

That, in my opinion, is a brilliant result already.

But could there potentially still be more to come – and ought I to invest?

The long-term investment case remains sound

I have liked the look of Raspberry Pi’s business since it came to the market.

It successfully occupies a distinctive niche in the IT industry. It has an asset-light model and is set to benefit from long-term demand growth.

So, why did I not buy before?

What held me back was the price. I liked the idea of owning some Raspberry Pi shares – but was unwilling to pay what they cost.

Since then, the share price has soared.

That reflects changes in how the stock market is thinking about what AI could mean for Raspberry Pi. So, it makes sense for me to revisit my previous view in deciding whether the business’s current outlook potentially merits the valuation it now attracts.

Doing well – but what about the future?

This month, the company issued an upbeat trading update.

It said that trading in the first half of the year so far has been strong. Profitability is expected to be materially ahead of the same period last year.

Raspberry Pi expects adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) to be at least $38m. That is roughly double the $19.4m achieved in the equivalent period last year.

Such a strong performance underlines the narrative that demand for Raspberry Pi’s offering is strong and provides an excellent basis for future growth.

One risk is the elevated cost of DRAM memory. Given the heated market surrounding AI, lots of industrial users are scrambling for components.

That includes Raspberry Pi and has pushed up some of its costs, although the company is optimistic that it can resolve those challenges over time.

I like this share – but not at this price

The future looks bright for Raspberry Pi and I see substantial ongoing growth opportunities over the long term.

Still, given that Raspberry Pi shares sell for 103 times earnings, I am clearly not alone in that regard.

Frankly, that price is too high for my tastes.

So, I am passing over this opportunity for now and looking for other tech opportunities I feel offer a more attractive valuation.

Should you invest £5,000 in Raspberry Pi Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Raspberry Pi Plc made the list?

Christopher Ruane does not hold any positions in the companies mentioned.

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Moreover, unlike SpaceX, they’re not trading at totally bonkers valuations. Here are two that I think are worth considering above the rocket and satellite giant today.

Future agentic AI winner?

Up 181%, Raspberry Pi (LSE:RPI) is the best-performing FTSE 250 stock year to date.

The company makes low-cost computer boards and semiconductors, both of which are hot right now. But news earlier this year that computing enthusiasts were using Raspberry Pis to run OpenClaw, the AI agent that can do tasks on devices, sent the stock soaring.

The firm says it hasn’t seen a huge uptick in demand from agentic AI yet. But management is excited because it views this as a sign of things to come from industrial customers, setting it up for potentially explosive AI-related growth over the next decade.

We have the opportunity to become the default embedded host for agentic AI…Often what we find is that our enthusiast customer base are ahead of the game. The things our enthusiasts are doing now…our industrial customers…will be doing in 3, 4, 5 years’ time.
CEO Eben Upton.

Raspberry Pi’s current valuation is a bit too fruity for my liking, especially when the global memory chip shortage could last well into 2027, thereby threatening growth. But next to loss-making SpaceX, the stock looks infinitely better value.

Investors considering this stock should brace themselves for volatility (it’s down 18% in two weeks). And the high starting valuation puts it in the high-risk, high-reward category.

Personally, I’m waiting for a better entry point. But I like it over SpaceX, as things stand.

Space start-ups

Next, we have Seraphim Space Investment Trust (LSE:SSIT). This niche fund has stakes in space-tech firms, which have enjoyed a huge increase in demand due to SpaceX’s IPO.

The share price is up 60% in a year, sealing the trust a spot in the mid-cap index.

So why do I like this one? Well, many of the holdings are no longer pre-revenue start-ups. Top holding ICEYE — a radar satellite imaging company — was recently valued at €10bn, with a €1.5bn order backlog and seven European governments as customers.

The increase in European defence spend should benefit other holdings, while HawkEye 360 and Voyager Technologies have listed across the pond.

We remain confident that NAV [net asset value] will continue to appreciate, supported by strong defence tailwinds and a structural shift in investor appetite, further catalysed by the anticipated SpaceX IPO, which could prove transformational, by being a catalyst for generating billions of new capital into the market. Against this backdrop, the SSIT portfolio remains uniquely well positioned.
June 2026.

The fact that the portfolio is invested in one overarching theme adds risk, as does a 50% weighting towards ICEYE. If something went awry with that holding, the trust could quickly lose value.

But after dipping 26% in less than a month, the stock looks more attractive. Taking a five-year view, I’m optimistic this trust will do well as the global space sector takes off.

Should you invest £5,000 in Raspberry Pi Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Raspberry Pi Plc made the list?

Ben McPoland has no position in any of the companies mentioned.

The post 2 top FTSE 250 growth stocks I prefer over SpaceX today appeared first on The Twelfth Magpie.

Should I snap up some shares at 876p in case this fascinating UK tech stock heads even higher?

Multiplying use cases

Raspberry PI designs high-performance single board computers, modules and semiconductors. While it started in the education and hobbyist markets, the company has broadened its customer base significantly, with around 75% of units now sold to OEMs (original equipment manufacturers).

Commercial and industrial applications include smart vending machines, smart home appliances, factory automation, and medical monitoring systems. Obviously, this represents a much larger opportunity because large OEMs commit to buying in bulk, often over multiple years.

Ironically though, it was a hobbyist trend back in February that kicked off the stock’s meteoric rise. Viral videos showed how people were using Raspberry Pi’s boards to run autonomous AI agent OpenClaw.

The excitement reached fever pitch in June when the company released a strong trading update. This said profitability was “materially ahead” of expectations as it benefitted from strong pricing and industrial demand.

For the six months ending 30 June, the firm expects adjusted EBITDA of at least $38m. For context, the market was expecting EBITDA of $42m for the whole year, so this was a significant upgrade to the outlook.

This news sent the stock surging to a record high of 1,051p.

A future agentic AI leader?

Now, this is a stock where I see enormous long-term potential in Edge AI compute (ie AI that runs directly on a device instead of in the cloud). Just consider the following quote from management in March:

We have the opportunity to become the default embedded host for Agentic AI. We’re already seeing this in the popularity of agentic platforms like OpenClaw running on Raspberry Pi. Together, these give us the opportunity to define the future direction of AI as inference migrates to the edge over the next decade.

CEO Eben Upton.

The company notes that what its enthusiast customer base is doing today with agentic AI, its industrial customers will follow in a few years’ time.

If Raspberry Pi can become the default embedded host for agentic AI, then this will surely be a much larger company in a decade’s time. After all, its market-cap today is only £1.7bn (a relative minnow in the global tech/AI world).

Also, the firm’s first software product — Raspberry Pi Connect, which offers remote access and over-the-air updates — now has more than 500,000 registered devices. This platform should help to build a durable moat, protecting it from lower-cost Chinese hardware rivals.

Am I buying?

As exciting as this sounds, there are currently a couple of big risks. One is that its product prices will rise in 2027 due to the DRAM chip shortage, which will boost revenue but could hurt overall demand and margins.

The second is a sky-high forward earnings multiple of 73. To me, this valuation looks a bit overripe, even after the stock’s recent 17% pullback.

That said, I’m still very interested in Raspberry Pi, so it remains on my watchlist. I’m just waiting for a lower share price.

Should you invest £5,000 in Raspberry Pi Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Raspberry Pi Plc made the list?

Ben McPoland has no position in any of the companies mentioned. 

The post £7,500 invested in Raspberry Pi shares just 3 months ago is now worth… appeared first on The Twelfth Magpie.

Mixing income and growth

There are two main ways to make this possible. The first would be to pick high growth stocks, with the potential for the share price to appreciate in value over the coming years, and for this to average out at 10%. The other is to pick dividend stocks. Based on the dividend yield, it’s possible to include different options which would then average out at a 10% yield from the income paid out.

There’s no guarantee that 10% will be achieved over time. Share prices can fall as well as rise, and dividends can be cut. To try and reduce the risk of underperforming, one idea is to mix up the portfolio with growth and income shares. Not only this, but having a spread of companies provides diversification. That way, even if one company really disappoints, it’s not fatal for the overall goal.

Although 10% for growth shares can be very achievable, a 10% yield from dividend shares is harder. The small pool of options could restrict an investor, but this doesn’t mean that it’s not worth pursuing. That way, income can be banked and provides cash flow, versus growth stocks where the capital remains tied up as it hopefully appreciates in value over time.

A hot area of the market

One example of a stock to consider is Raspberry Pi (LSE:RPI). I bought the stock recently, based on the high growth prospects I believe it has.

The stock’s up 77% in the past year, driven by strong financial results that are showing high demand for semiconductors and chips. In fact, in the latest full-year results, these divisions have officially outpaced physical board sales, marking a historic business shift.

It also upgraded full-year adjusted profit forecasts to “significantly ahead” of initial market projections, with interim core profit nearly matching previous full-year targets.

This all bodes well for further share price gains ahead, as demand for cheaper and flexible computing keeps rising. More businesses are looking for ways to add intelligence to everyday products without relying on expensive systems.

One risk is that the firm’s still small relative to the big tech rivals. Competition to take things to the next level is high, and there’s a risk that growth expectations become overly optimistic. Even with this factor, I still think it’s a stock people should consider as part of a high-growth strategy.

Should you invest £5,000 in Raspberry Pi Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Raspberry Pi Plc made the list?

Jon Smith owns shares of Raspberry Pi.

The post How to invest in the UK stock market to target a 10% annual yield appeared first on The Twelfth Magpie.

In money terms, that means a modest £1,000 invested at the beginning of January is already worth £2,779 today. The question is, can this UK tech enterprise do it again?

Let’s find out.

Why has the share price gone parabolic?

As a quick reminder, Raspberry Pi designs and sells high-performance, low-cost computing platforms. And why the share price is on fire all boils down to an eruption in demand.

Full-year 2025 results released in March revealed revenue up 25% to $323.2m, profit before tax up 63% to $26.5m, and basic earnings per share surging 73% to 11.22 cents. All of this came in ahead of expectations.

Skip ahead to earlier this month, Raspberry Pi dropped a bombshell trading update. Across the first half of its 2026 fiscal year, profitability was “materially ahead” of the prior year, with over four million units already shipped delivering an adjusted EBITDA of at least $38m.

For reference, analysts were expecting the company to deliver just $42m in adjusted EBITDA for the full year. And the result of delivering almost an entire year’s worth of expectations in the space of six months was another 27.6% single-day share price surge!

So can this momentum continue?

What’s on the horizon?

Raspberry Pi’s executing a pivot from a boards-and-modules business into a two-franchise model, adding a fast-scaling semiconductor division alongside its hardware range.

In 2025, microcontroller shipments rose 47% to a record 8.4 million units, exceeding both board and module shipments. But that might be just the tip of the iceberg, with management laying out its ambition to eventually ship billions of units each year.

Meanwhile, US revenue grew 56% in 2025, thanks in part to the fact that Raspberry Pi’s exclusively UK-manufactured products carry lower tariffs than predominantly China-manufactured competitors – a significant structural advantage in the current global trade landscape.

However, there are some important risks to keep an eye on. The biggest near-term risk is memory shortages. Global memory prices have been rising sharply due to AI-driven demand.

So far, the impact has been minimal as Raspberry Pi draws down on its inventory stockpiles. But these won’t last forever, and once the company’s forced to start buying new memory components at today’s inflated prices, margins are at risk of being squeezed.

So what’s the verdict?

Raspberry Pi shares have already delivered extraordinary returns, thanks in large part to the booming AI infrastructure market. But as a consequence, its near-term fate appears ultimately tied to AI-related spending.

Provided that spending continues to rise, Raspberry Pi shares could continue to follow even from today’s massive valuation. But the slightest hint of a slowdown could be all that’s needed to send the shares tumbling back down.

Personally, the risk-to-reward ratio’s a bit too rich for my tastes. But for investors looking for supplier exposure to the AI market, Raspberry Pi does seem to have impressive structural advantages backing its business so may be worth a look.

Should you invest £5,000 in Raspberry Pi Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Raspberry Pi Plc made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post £1,000 invested in Raspberry Pi shares at the start of 2026 is now worth… appeared first on The Twelfth Magpie.

But the question now is, which stocks will be the next top performers? Here are two picks from institutional analysts for June.

Raspberry Pi: is there still more to go?

Even after more than tripling, it seems analysts are still bullish about what’s on the horizon. As a quick crash course, Raspberry Pi makes low-cost, high-performance computing platforms used across industrial automation, education, and edge-AI applications.

The most recent trading update upgraded full-year EBITDA guidance to “significantly ahead” of the current market consensus of $42m, and EBITDA across the first half of its 2026 fiscal year is already expected to come in at no less than $38m.

That’s a pretty extraordinary number for a business of this size. And the team of analysts at Jefferies responded by raising its revenue forecast by 42% to $511m, underpinned by accelerating demand from AI and industrial customers.

Peel Hunt also raised its 2026 revenue forecast, though it trimmed its gross margin expectations to reflect the ongoing cost pressures from rising memory prices. And that’s precisely the bear case.

Raspberry Pi’s single-board computers rely heavily on LPDDR4 DRAM, the price of which has risen sharply as memory manufacturers divert capacity to serve AI data centres. As such, the risk of margin compression is significant, especially once the group’s used up its inventory buffers.

Nevertheless, even with this incoming headwind, it’s hard not to be impressed with Raspberry Pi’s fundamentals.

Gamma Communications: the unloved compounder

Another growth stock getting attention from experts is Gamma Communications (LSE:GAMA) – a cloud-based business communications provider serving businesses across the UK and Western Europe.

Unlike Raspberry Pi, Gamma’s share price hasn’t been on a rampage in recent months or even in recent years. But the share price tells a misleading story.

Despite reporting 2025 revenue up 11% to £645.8m and gross margins expanding to 54%, the stock has more than halved from its 52-week high. Why? The market took fright at falling earnings driven by acquisition-related costs from its German expansion.

While these expenses are real, acquisitions are ultimately a short-term distortion rather than a permanent drop in profitability. And its why institutional analysts are starting to think the recent pessimism could be a buying opportunity.

The median 12-month price target from six analysts currently covering the stock sits at 1,427p. That’s roughly 51% higher than where the shares are trading today. And its party why several institutional analysts have reiterated their Buy recommendations in recent months.

To be fair, there are some real risks. The debt-to-equity ratio has risen following the German acquisitions, and any slowdown in the European communications market could pressure near-term earnings even further.

It’s a valid concern. But the consensus is it may currently be too excessive.

The bottom line

Both Raspberry Pi and Gamma represent genuinely different flavours of growth. One is a momentum story with extraordinary near-term numbers but real margin uncertainty ahead. The other is a contrarian recovery play that analysts believe the market’s significantly mispricing.

For investors hunting for British growth stocks in June, both are worth a deeper dive.

Should you invest £5,000 in Gamma Communications Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Gamma Communications Plc made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post What are the best British growth stocks for June? appeared first on The Twelfth Magpie.

Developing as a business

Most people know Raspberry Pi for its tiny, affordable computers used by students and hobbyists. However, that perception is increasingly out of date. Today, the company’s products are embedded in small-scale computing applications in a wide variety of sectors, ranging from industrial automation systems through to medical devices. In many ways, Raspberry Pi has evolved from a teaching tool into a platform company for computing.

The company makes money primarily by selling single-board and related hardware. Importantly, customers building products around Raspberry Pi often remain within the ecosystem for years, creating recurring demand for replacement units. It has also been expanding its semiconductor business, which is one of the reasons why the stock has been tearing higher this year.

In all the right places

The latest annual results from late March showed that, “for the first time, semiconductor device volumes exceeded those of boards and modules, with 8.4 million semiconductor units sold”. This area of the market is super hot at the moment with AI applications, so it’s a great sign that the business is benefiting. It broadens its addressable market while also attracting UK investors seeking exposure to AI without buying US mega-cap tech stocks.

Another factor has been the financial momentum, leading investors to increase earnings expectations. Revenue popped 25% last year, with profit before tax up 63%. Management recently upgraded profit expectations, with first-half 2026 adjusted EBITDA expected to almost match what analysts previously expected for the entire year.

Keeping the party going

Despite the huge rally, I think there’s a credible case that the stock could continue to climb over the next year. For a start, Raspberry Pi is benefiting from the rise of Edge AI. While most investors focus on giant data centres and expensive AI chips, many AI applications will eventually run on local devices. This is where Raspberry Pi should really shine, as it can offer low-cost, energy-efficient hardware.

Further, industrial adoption remains in its early stages. Once a manufacturer designs a Raspberry Pi module into a product, switching costs can be meaningful. This should mean that revenue keeps growing, as new clients turn into larger repeat clients.

Finally, the company is still relatively small, with a market cap of £1.61bn. From my perspective, it can still rally further before it becomes too large and stunts growth.

Of course, investors should not ignore the risks. For example, management has already highlighted uncertainty regarding DRAM availability and costs, which could put pressure on profit margins. There is also the possibility that enthusiasm around AI-related demand proves temporary. But even with these concerns, I think it is definitely one of the best UK growth shares out there at the moment, and I believe investors could consider buying it.

Should you invest £5,000 in Raspberry Pi Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Raspberry Pi Plc made the list?

Jon Smith has no positions in the shares mentioned.

The post Did Raspberry Pi just become the best growth share on the UK market? appeared first on The Twelfth Magpie.

There’s been no real news since the soaring computer company released a first-half trading update on 5 June, so there doesn’t seem to be anything negative for shareholders to watch out for. But we’ve seen volatile rides for US chip stocks this week, with the upcoming SpaceX IPO making a lot of investors anxious. Is it just nerves?

Cracking half

Last week’s update was impressive, and the share price jumped 28% on the day. So even after this latest retreat, we’re only back around where we were before the day before. And Raspberry Pi shares are still up 176% so far in 2026. My Twelfth Magpie colleague Edward Sheldon examined the full details.

The company reported H1 “profitability materially ahead of the prior year,” with management expecting to ship 4m units in the half — which doesn’t actually conclude until 30 June.

There is one cloud on the horizon, though, as the company told us “the pricing and availability of DRAM and non-volatile memory remains challenging“. With the AI surge meaning almost every tech company out there is clamouring for chip memory, that challenge could go on for a while.

So why the fall?

In the absence of any concrete trigger, I have to see this latest price fall as a combination of investor sentiment and some profit-taking. US Magnificent Seven stocks seem to be weathering this week’s ups and downs reasonably well.

But Bank of America analysts are growing concerned over the way stocks on high price-to-earnings (P/E) ratios have been outperforming lower P/E stocks. And they say seven of their 10 bear-market signals have flashed up in recent months.

So for any investor who’s seen the value of their Raspberry Pi shares soar so high this year, converting some of it into hard cash is understandable.

What should investors do?

I confess I’m excited about the possibilities that AI could bring for Raspberry Pi. But I’m wary of the valuation of the shares right now. So I’ve compared the forecast P/E valuations analysts currently have on Raspberry Pi with a couple of US chip makers. They might not be exactly comparable, but they do make products beyond single chips.

I threw in Tesla just for fun really, to show how high positive sentiment can push a stock’s valuation. It’s anyone’s guess what SpaceX might command.

Growth vs risk

This really does look like a stock best suited to investors with diversified growth portfolios, and who are happy to take risks on individual high valuations. And anyone looking for an AI play might do well — especially if we see more down days like this. But Raspberry Pi shares are too rich for my blood.

Should you invest £5,000 in Raspberry Pi Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Raspberry Pi Plc made the list?

Alan Oscroft does not hold any positions in the companies mentioned.

The post Why did Raspberry Pi shares just slump 14%? appeared first on The Twelfth Magpie.