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British technology company Raspberry Pi said memory supply issues related to the rapid growth of artificial intelligence data centers have increased uncertainty about its future performance prospects.
It comes as the microcomputer maker noted stronger-than-expected profits last year.
However, the Cambridge-based company’s shares fell in early trading after highlighting the memory shortage.
The company is one of many technology manufacturers using Dram (dynamic random access memory) hardware in their products.
However, Raspberry Pi said that demand for specific Drams for many of its products has “increased rapidly in recent months, with some major suppliers now indicating that high-density supply is limited.”
The main reason for this problem is that memory companies have transferred their manufacturing capabilities to AI data center operators, and investment by these operators has surged.
Raspberry PI has been taking a number of actions to help address supply issues, including qualifying additional suppliers, developing products with reduced memory capacity, and increasing prices to address higher costs and protect margins.
The company added that strong relationships with key suppliers and inventory buffers mean it has sufficient memory supply for “most” of its products, which rely on its key LPDDR4 DRAM hardware, to meet demand through the first half of 2026.
However, the company added: “There is significant uncertainty over the timing of a return to more normal Dram pricing and supply.”
It also highlighted “limited” visibility into the second half of 2026 and beyond.
Meanwhile, bosses reported that adjusted profits for 2025 would “beat” market forecasts and not fall below $45m (£33.3m).
The group reported shipments of 4 million units in the second half, with profitability improving in particular in the final quarter.
Raspberry Pi CEO Eben Upton said: “I’m pleased with our strong performance in 2025, which reflects the flexibility and resiliency of the Raspberry Pi business model and accelerated adoption of our computing platform by volume OEM (original equipment manufacturer) customers.
“Growth in shipments from our Semiconductor business unit, along with positive customer feedback on our Connect remote access and over-the-air update products, demonstrate our ability to bring the Raspberry Pi value proposition to new markets.
“Despite a challenging memory supply environment, our supply chain discipline allows us to meet growing customer demand.”
shares It was down 7.7% on Tuesday morning.