Only people who are uninterested in the stock market – or those living under a rock – are unaware of this Nvidia is tape storage that you can own for the long term. We’re talking about a return of 19,028% (in US dollars) over the last decade!

That’s why when I heard my own sound of Great Britain Raspberry Pi (LSE:RPI) mentioned Nvidia in the same breath, my ears pricked up. Broker in mid-2024 Peel Hunt wrote: “Edge computing is supposed to do the same thing to Raspberry Pi as a desktop computer Microsoftthe smartphone did it Appleand the data center does it to Nvidia.”

That’s an invigorating thought, especially since Raspberry Pi’s market capitalization is still just £840 million (a minnow in today’s world of tech leviathans). Moreover, as I write today (March 31), FTSE250 stocks soared 46% higher to 426p.

So can Raspberry Pi become a technological giant? Let’s talk.

Another robust year

For the uninitiated, Raspberry Pi makes single-board computers and accessories used by hobbyists and industrial companies. The devices are low-cost, compact, and scalable, making them ideal for a variety of edge computing applications.

Edge computing involves processing data closer to where it was created, rather than on a distant cloud server. That’s why more and more original equipment manufacturers (OEMs) are integrating Raspberry Pi technology into their products.

Shareholders can thank today’s release of its 2025 annual report for the stock’s surge. Here, management said revenue increased 25% year-over-year to $323.2 million after shipping 7.6 million units, up 9% from 2024. Demand was robust from the United States and China.

Meanwhile, adjusted EBITDA increased 25% to $46.4 million, higher than previously expected. It is said that this was due to “strengthening demand and favorable unit economics throughout the second half of the year“.

For the first time, Raspberry Pi sold more semiconductor devices (8.4 million units) than boards and modules. CEO Eben Upton said this signals progress towards “a two-franchise business“. Aims to ultimately send “billionssemiconductor devices.

The company confirmed that robust sales growth continued in the first months of 2026, with significantly higher revenues now expected for the full year.

However, this is largely due to the rising costs of DRAM memory chips. While Raspberry Pi expects costs to be passed on to customers, the biggest near-term risk here is a chip shortage. This limits management’s insight into H2.

Similarities and one massive difference

So is an Nvidia lawsuit coming? Well, I see some similarities. Like Nvidia, Raspberry Pi is a founder’s creation and a very creative computer hardware.

I like his ability to quickly capitalize on emerging technology trends. For example, the HAT+2 AI board enables customers to run advanced AI applications such as enormous language models on their devices. The possibilities of edge AI seem significant.

Additionally, by moving to semiconductors, the Raspberry Pi demonstrates optionality (another key feature of Nvidia). Both also have many supporters in global developer communities.

On the other hand, Nvidia’s gross margin of 71.3% is a completely different planet than Raspberry Pi’s 24.1%. Peel Hunt believes that percentage could drop to less than 15% this year due to rising memory chip prices.

Raspberry Pi is an invigorating company, but it’s too early to tell if it’s a sleeping giant. And considering the company’s stock is currently trading at a high 50 times forward earnings, I have no intention of buying it today.

It remains on the watchlist for now.