Source: Bloomberg
Raspberry Pi is growing top-line revenue at a healthy 25% clip, but investors are punishing the stock because cost inflation in memory chips is squeezing profitability faster than sales can offset it—a classic squeeze for hardware makers with thin margins operating in commodity-dependent supply chains. The divergence between 25% revenue growth and a 21% stock decline over a year shows that the market no longer rewards volume growth alone; it’s pricing in the structural headwind of rising input costs that Raspberry Pi can’t easily pass through to price-sensitive customers in edge computing, robotics, and maker markets. Which hardware companies survive the next cycle depends on pricing power or differentiation, not just distribution in high-growth regions like China and the US.