The memory-chip price surge claims another victim, and the stock drops 8%.

By Steve Goldstein

King Charles III speaks with Raspberry Pi Chief Commercial Officer Mike Buffham, during a visit to the Sony UK Technology Centre. Raspberry PI shares slumped on Tuesday.

Raspberry Pi, a maker of specialist and hobbyist computers, warned Tuesday that the memory-chip price surge will hit profits this year.

The Cambridge, England based company said the cost of memory chips used in many Raspberry Pi products has increased rapidly as supplies are diverted to AI data centers. It said visibility beyond the first half is limited and dependent on pricing trends and supplies.

Raspberry Pi shares (UK:RPI) fell 8%.

It said it's taking steps including qualifying additional suppliers, developing product variants with reduced memory capacity and raising its own prices.

The update came as it said it's 2025 adjusted earnings before interest, tax, depreciation and amortization will be at least $45 million, vs. the $40.9 million company-compiled consensus, after shipping 7.6 million units.

Analysts at brokerage Peel Hunt say they are assuming the worst and cutting their 2026 adjusted EBITDA forecast to $40 million from $46 million.

The Peel Hunt team led by Damindu Jayaweera said the memory chip market is in such a disarray that older chips, on the spot market, actually trade at 4 times newer versions.

"These memory bubbles are transient but impossible to time," they said.

Memory-chip producers continue to see their share prices surge. Micron Technology (MU) stock has gained 21% in 2026 as Samsung Electronics (KR:005930) has gained 15% and SK Hynix (KR:000660) has added 13%.

-Steve Goldstein

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