Key Takeaways:
- Raspberry Pi is executing a dual-strategy expansion through board-to-board enterprise relationships and semiconductor franchise growth.
- RPI stock could reasonably reach $6.92/share by December 2027, based on our valuation assumptions.
- This implies a total return of 35% from today’s price of $5.14, with an annualized return of 14.5% over the next 2.2 years.
Raspberry Pi Holdings (RPI) is redefining embedded computing through strategic platform expansion, addressing comprehensive industrial OEM solutions, semiconductor innovation, and channel optimization across its global markets.
The UK-based computing pioneer serves customers worldwide through its diversified platform, which includes single-board computers, compute modules, microcontrollers, and accessories delivered through direct sales, reseller partnerships, and licensing agreements.
Core offerings include the flagship Raspberry Pi 5 platform, Compute Module products for industrial applications, RP2040 and RP2350 microcontrollers for IoT devices, and an expanding portfolio of accessories and custom solutions for OEM customers.
The embedded computing leader delivered first half 2025 unit volumes of 3.6 million boards, flat year-over-year but up 10% sequentially, with adjusted EBITDA of $19.4 million as the company navigated channel normalization and began scaling its board-to-board initiative.
Raspberry Pi demonstrates strong execution across product innovation and customer expansion under CEO Eben Upton and CFO Richard Boult.
The tech entity achieved a major milestone by selling more chips than boards for the first time, with semiconductor shipments up 69% sequentially. Meanwhile, the board-to-board program opens CTO-level conversations with major industrial OEMs to drive larger design wins.
RPI stock went public in June 2024 on the London Stock Exchange. Here’s why Raspberry Pi stock could provide strong returns through 2027 as it capitalizes on industrial OEM demand while scaling its semiconductor business into an equal contributor alongside board-level products.
See analysts’ full growth forecasts and estimates for RPI stock (It’s free) >>>
What the Model Says for RPI Stock
We analyzed the upside potential for Raspberry Pi stock using valuation assumptions based on its dual-franchise strategy and expansion opportunities across industrial computing and semiconductor markets.
Analysts recognize an opportunity ahead for RPI stock given its proven product innovation, strong OEM relationships, and systematic approach to building competitive advantages while maintaining accessible pricing that drives adoption.
Raspberry Pi’s two mutually supporting franchises provide multiple growth vectors. The board products serve as a shop window for semiconductors, while the chips enable better board designs in an ecosystem that reinforces both sides of the business.
Based on estimates of 14% annual revenue growth, 10% operating margins, and a normalized P/E valuation multiple of 40x, the model projects Raspberry Pi stock could rise from $5.14/share to $6.92/share.
That would be a 35% total return, or a 14.5% annualized return over the next 2.2 years.
Value RPI stock with TIKR’s Valuation Model today for FREE (Find undervalued stocks fast) >>>
Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for RPI stock:
1. Revenue Growth: 14%
Raspberry Pi delivered solid first half 2025 performance, with unit volumes recovering 10% sequentially as channel inventory normalized following the heavy stockpiling that plagued the second half of 2024.
Growth drivers include the board-to-board initiative targeting 50,000+ unit “whale” customers, expanding semiconductor adoption with RP2040 ramping aggressively nearly five years post-launch, and sustained innovation through new product variants addressing specific customer needs.
We used a 14% forecast, reflecting Raspberry Pi’s proven ability to serve diverse computing applications while expanding from traditional maker/education roots into large-scale industrial deployments.
2. Operating Margins: 10%
In the first half of 2025, Raspberry Pi maintained operating margins around 10% despite headwinds from product mix shifts and public company costs.
This was supported by channel optimization, which moved OEM customers into higher-margin direct sales.
RPI targets sustainable margin improvement through multiple levers, including memory density upsells, custom board development for volume customers, extended temperature variants commanding premium pricing, and accessories contributing incremental profit per transaction.
3. Exit P/E Multiple: 40x
Raspberry Pi stock trades at elevated multiples reflecting its growth profile, market positioning, and unique franchise across both board-level products and semiconductor components.
We maintain a 40x valuation level given Raspberry Pi’s execution capabilities, innovation track record, and systematic approach to building sustainable competitive advantages through vertical integration, UK manufacturing, and ecosystem development.
Long-term competitive advantages from brand recognition, engineering talent, and customer relationships should support premium valuations as the company capitalizes on industrial IoT expansion and scales semiconductor volumes toward equal contribution with board products.
Build your own Valuation Model to value any stock (It’s free!) >>>
What Happens If Things Go Better or Worse?
Different scenarios for RPI stock through 2030 show varied outcomes based on execution and market conditions (these are estimates, not guaranteed returns):
- Low Case: Slower board-to-board wins and DRAM pressure → 11% annual returns
- Mid Case: Successful enterprise scaling and semiconductor momentum → 17% annual returns
- High Case: Major design wins accelerate with semiconductor parity → 22% annual returns
Even in the conservative case, Raspberry Pi stock offers attractive returns supported by product innovation and proven ability to serve expanding computing applications while maintaining cost leadership.
The upside scenario for RPI stock could deliver exceptional performance if the company successfully converts board-to-board conversations into material volumes while achieving the aspiration of semiconductor revenue reaching parity with board products.
See analysts’ growth forecasts and price targets for any stock (It’s free!) >>>
Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential
TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.
Inside, you’ll get a breakdown of 5 high-quality businesses with:
- Strong revenue growth and durable competitive advantages
- Attractive valuations based on forward earnings and expected earnings growth
- Long-term upside potential backed by analyst forecasts and TIKR’s valuation models
These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.
Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.
Click here to sign up for TIKR and get your free copy of TIKR’s 5 AI Compounders report today.
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
