Raspberry Pi shares fall as AI data centre demand strains memory supply
Raspberry Pi’s shares dropped sharply after the Cambridge-based tech firm warned that memory component shortages linked to booming AI data centre demand are creating uncertainty in its outlook, despite stronger-than-expected profits.
UK-based microcomputer manufacturer Raspberry Pi Holdings plc announced that surging demand for dynamic random access memory (DRAM) from AI data centres is tightening the supply of key components used in its products, leading to heightened uncertainty about future trading.
Investors reacted negatively, with shares sliding about 7.5 percent on the London Stock Exchange after the company’s warning that memory pricing and availability may remain constrained beyond the first half of 2026.
Raspberry Pi stressed that it has taken steps to mitigate the situation, including qualifying additional suppliers, developing lower-memory products and raising prices, and maintains sufficient inventory for the near term.
The company also reported that adjusted earnings for 2025 were ahead of market forecasts, supported by strong unit shipments. However, it highlighted ‘limited visibility’ for the second half of 2026 and beyond due to the unpredictable memory supply landscape.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!