Raspberry Pi Holdings PLC (LSE:RPI) shares jumped 45% on Tuesday after the group reported strong demand despite sharp price increases, prompting upgrades from analysts.
The maker of low-cost computing boards has pushed through steep rises, with prices for some higher-spec products up more than 50%, yet volumes have held firm.
Jefferies said this reflected "strong demand… despite sharp increases in pricing", pointing to resilient underlying appetite for industrial components.
The broker lifted its 2026 revenue forecast by 42% to $511 million, implying growth of 58%, driven by higher selling prices rather than volumes.
However, profits are expected to remain broadly unchanged as increased memory costs are passed through to customers.
"While pre-buying may be contributing to a small extent, we believe underlying industrial component demand is strengthening worldwide," said analyst Janardan Menon, adding that the gradual adoption of edge-AI "may also be a small contributor".
Beyond boards, semiconductor volumes rose 47% last year, underlining progress in building a second growth engine.
Looking forward, Menon said: "There has been some volatility in the company's share price recently on speculation regarding its boards being bought to run argentic AI applications on OpenClaw.
"While management has not seen any spike in enthusiast demand so far, it is increasingly clear to us that many agentic AI models will end up running on CPU-based solutions at the edge.
"For many developers of such solutions, Raspberry Pi's boards would be an appropriate low-cost, low-power, reliable solution.
"This potential upside combined with the expected growth in semiconductors makes the company an attractive long-term investment, in our view."