Source: Bloomberg
Raspberry Pi is expanding revenue faster than its stock price recovers, showing that unit growth alone doesn’t offset the structural economics of memory chip inflation—a constraint affecting any hardware company dependent on commodity input costs. The divergence between 25% revenue growth and a 21% stock decline over the year reveals investor skepticism about profitability, not demand: US and China buying cycles are strong, but the margin math isn’t working. The same pressure affects the broader embedded systems market, where price-sensitive IoT and edge devices can’t easily pass costs downstream to cost-conscious customers.