Raspberry Pi shares jumped 19% after the Cambridge-based chip designer raised its profitability guidance. The company now expects adjusted EBITDA of at least $38 million in the first half of 2026, putting it on track to exceed analysts' full-year forecasts of $42 million. The stock has more than doubled over the past year.

Raspberry Pi anticipates selling more than 4 million units in the first half amid robust demand fueled by the AI boom. However, unit economics will moderate in the second half as DRAM inventory depletes. The company plans to use debt for strategic memory purchases to mitigate potential volatility in DRAM pricing while maintaining production goals.

Jefferies analysts now expect Raspberry Pi's revenue and earnings to surpass their previous forecasts and market expectations for 2026 and early 2027. The firm had previously estimated full-year 2026 revenues at $511 million. Despite DRAM cost concerns, Raspberry Pi remains confident in securing necessary inventory to meet production targets.