Raspberry Pi Holdings PLC (LSE:RPI) reports interim results next Tuesday, 23 September, with its shares having almost halved from their peak after the spring saw the publication of maiden full-year results.
On the outlook the UK-based maker of single-board computers said at the time that channel inventory had "normalised" and it "anticipates a steady build-up in demand throughout the year".
Management expressed confidence in "solid and sustainable sales growth" for 2025.
Getting deep into the weeds in a recent note, analysts at Deutsche Bank earlier this month said that investors "should take note" of the market for DRAM -- dynamic random-access memory, not a shot of whisky.
The analysts, alongside a cut to the share price target from 460p to 420p, noted that pricing for DDR4 -- a generation of DRAM technology used in some models like the Raspberry Pi 4 -- has spiked.
The analysts noted that consumer DDR4 prices are up 85-90% in the third quarter alone, which "mirrors a picture that we have picked up" in recent research, "which is that DDR4 is severely short".
"In fact, there is little supply at distributors which means that direct relationships with the big 3 DRAM players are essential."
As far as the analysts can tell, EOL (end of life) notices have gone out from the big three DRAM manufacturers, with some packaging lines having been closed down.
"Unsurprisingly, there is now pressure (mainly from the telecom/industrial end_markets) for the DRAM players to restart production.
"However, there does appear to be a critical shortage at least for the next 3-6 months."