It’s true that within the UK, we don’t have an enormous quantity of tech shares to get enthusiastic about. Most flourish throughout the pond in Silicon Valley and are listed over there. But there are some FTSE shares within the tech area which can be price contemplating. Right here’s one which went public lower than a yr in the past that I feel has good potential.

The lengthy story quick

I’m speaking about Raspberry Pi (LSE:RPI). It was truly based as a charity again in 2008, with the purpose of creating an inexpensive laptop to encourage younger individuals to be taught programming and computing. After launching the primary mannequin again in 2012, issues took off, with over 50m unit gross sales world wide.

It now has a broader vary of merchandise, together with compute modules, equipment and semiconductors. Commercially, it’s doing properly, particularly after itemizing on the inventory market in June final yr. The newest half-year report “was stronger than we had previously expected”, with gross revenue of $34.2m for the interval.

The IPO price was set at 280p, with it presently buying and selling at 718p. Clearly, buyers are enthusiastic about its prospects.

What the longer term may maintain

The enterprise commented in an replace that “the market opportunity for Raspberry Pi products is substantial, with a total addressable market across the Industrial & Embedded and Environmental & Education markets estimated at $21.2bn in 2023.”

In fact, Raspberry Pi won’t ever have an entire monopoly on this market. But it goes to indicate the income potential for the longer term. With a present market cap of $1.67bn, there’s clearly room for the inventory to extend in worth considerably.

Additional, the enterprise is continuning to diversify the product providing. This bodes properly for the longer term, particularly with AI potential. Ought to the enterprise look to develop particular processors for extra high-end AI use, it may open up a a lot giant market.

Don’t get confused

Though I feel this can be a nice tech inventory for future progress, it’s vital to not get confused. I’ve seen some individuals examine this with Nvidia. But Nvidia focuses on making high-performance computing chips, whereas Raspberry Pi is within the low-cost and DIY area. Nvidia chips are far more highly effective and because of this, the corporate serves a unique set of shoppers.

This doesn’t imply that Raspberry Pi inventory can’t rally so much sooner or later, however I don’t see it copying the acute surge that we’ve seen in Nvidia inventory over the previous couple of years.

One threat going ahead is that cheaper options pop up from China. This might erode the market share for the corporate and strain revenue margins.

In the end, I actually just like the inventory and am significantly eager about shopping for it. Each the quick and long-term progress potential is there, for an organization that would turn into a UK tech darling.