Raspberry Pi's profits are up. So is its DRAM bill
Personal tech
Forecasts earnings well ahead of expectations, even as it taps credit facilities to lock in memory supply
The AI gold rush is proving good for Raspberry Pi's bottom line, but it's also forcing the low-cost computer maker to borrow money to keep enough memory chips in stock.
In a trading update published on Friday, Raspberry Pi said it expects full-year earnings to come in significantly ahead of market expectations after a stronger-than-expected first half driven by healthy demand, higher average selling prices, and the benefit of lower-cost memory inventory purchased earlier.
Raspberry Pi expects first-half profits of at least $38 million from shipments of more than 4 million units, putting it close to the roughly $42 million analysts had forecast for the entire year.
Investors piled in after the update, pushing Raspberry Pi shares up nearly 20 percent and more than tripling the Cambridge-based firm’s value since...
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