Raspberry Pi Faces Memory Shortage Amid AI Growth Impact
Raspberry Pi is facing memory supply challenges due to increased demand from AI data centers, leading to uncertainty about its future performance despite reporting stronger-than-expected profits last year. The company's shares declined as it noted limited availability of high-density DRAM, prompting efforts to qualify additional suppliers and develop lower memory capacity products. CEO Eben Upton emphasized the company's resilience, projecting adjusted profits exceeding $45 million for 2025 and the shipment of 4 million units in the latter half of the year.
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Raspberry Pi reported that memory supply issues due to the growth of AI data centers have created uncertainty about its future performance. Despite stronger-than-expected profits last year, the Cambridge-based company's shares fell after indicating limited high-density DRAM supply.
Memory manufacturers have prioritized AI operators, affecting Raspberry Pi's production. The company is qualifying additional suppliers and developing lower memory capacity products, while maintaining sufficient supply for most products through mid-2026.
Adjusted profits for 2025 are projected to exceed $45 million, with 4 million units shipped in the second half of the year. CEO Eben Upton noted strong performance and resilience in the business model.
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