13th Jan 2026 09:40
(Alliance News) - Raspberry Pi Holdings PLC shares fell on Tuesday, as it warned of "significant uncertainty" stemming from rising prices of a memory component, amid an artificial intelligence market boom.
The Cambridge, England-based maker of personal-use computers and modules said the cost of the "LPDDR4 DRAM used in many Raspberry Pi products" has risen sharply in recent months. It noted there are "some major suppliers now indicating limitations of supply at high densities".
"This trend has largely been driven by memory vendors diverting manufacturing capacity to meet the surge in AI data centre investment," the FTSE 250 constituent said in a trading statement.
Shares in the company slumped 7.5% to 268.22 pence each in London on Tuesday morning, the worst FTSE 250 performer.
Raspberry Pi said it has taken "multiple mitigating steps", including raising prices and developing products with "reduced memory capacity".
"The company's long-standing approach to managing its supply chain through close relationships with key suppliers, and its maintenance of LPDDR4 inventory buffers, has enabled it to secure a sufficient supply of memory across most LPDDR4-dependent products to meet expected H1 2026 demand," it said.
Raspberry Pi is confident first quarter shipments will increase on-year, with profit in the period in line with expectations, though visibility thereafter is "limited", it cautioned,
It warned: "H2 2026 performance and profitability will depend on DRAM pricing trends, high-density supply availability, the effectiveness of mitigation initiatives designed to support volumes and gross margins, and customer reaction to any further price increases."
More promisingly, it expects adjusted earnings before interest, tax, depreciation, and amortisation for 2025 to be ahead of market consensus, coming in at USD45 million, up 20% from 2024. Consensus stands at USD40.9 million.
"Unit shipments were 4.0 million in H2, a total of 7.6 million for FY2025, with the strong profit performance reflecting favourable unit economics in H2 and, in particular, through Q4," Raspberry Pi said. "Looking ahead, the company enters 2026 seeing robust demand from its OEM customers and major reseller partners, a strong pipeline of new product introductions and several active initiatives in place to accelerate medium-term growth."
Raspberry Pi releases annual results on March 31.
By Eric Cunha, Alliance News news editor
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