Stockpickers: Raspberry Pi, Princes Group, AG Barr

Microcomputer maker Raspberry Pi has long been popular with tech hobbyists. Hobbyist investors are starting to get involved, too. With some autonomous AI programs now running on local networks instead of in the cloud, the company's circuit boards have been touted as a cut-price facilitator of the new technology. Daily trading volumes in Raspberry Pi shares have soared amid the excitement. Not all are buying in. Hedge funds including Marshall Wace and Walleye Capital are among those to have increased or opened short positions this year, according to FCA data. The toing and froing means a share price that moved 10 per cent in a day just once in 2025 has already done so six times this year. The company has been making operational progress. Revenue and adjusted Ebitda each rose by a quarter last year, driven by interest from business customers -- who use Pi devices to power monitoring systems and digital signs -- rather than individual enthusiasts. The resulting share surge on Wednesday was closer to 50 per cent. AI may prove a double-edged sword. Analysts at Jefferies raised revenue forecasts for 2026 by more than two-fifths in response to this week's figures. Ebitda profit estimates, by contrast, were only raised 2 per cent. The rising cost of DRam chips, now needed by data centres as well as Raspberry Pi, is at the heart of this divergence. The company has resorted to raising prices, using a wider range of suppliers and holding more inventory as mitigation efforts. It is also benefiting from growing demand for a range of smaller semiconductor products, known as microcontrollers, which do not use DRam. Although microcontrollers' lower value means they currently contribute far less to the top line, chief executive Eben Upton believes the division can ultimately sell hundreds of millions of the units, which offer simpler, more customisable device connectivity. BUY: Raspberry Pi (RPI) The share price of Raspberry Pi fell by around 10 per cent, yet shares were buoyed in early 2026 on speculation that its digital hardware products stand to gain from low cost AI projects. Its latest full-year figures, found favour with the market, pushing up its market valuation by 44 per cent on results day, with cash profits up by 25 per cent to $46.4mn (£34.6mn). The company closed out 2025 with a better-than-anticipated cash position and profitability ahead of expectations. But gross margin declined as it had to contend with higher DRam memory costs. These costs are likely to remain elevated as the AI companies absorb the lion's share of chip supplies. The shares had been trading below the median multiple for the semiconductor sector on an enterprise/Ebitda basis. Given the momentum, we maintain our buy stance in the face of margin pressure. Mark Robinson HOLD: Princes Group (PRN) Princes Group swung from a £6mn loss in 2024 to a £55mn pre-tax profit last year, as a result of a structural clean-up of the business. Consolidated revenue jumped 46 per cent to £1.9bn. On a like-for-like basis sales dipped 6.5 per cent. Encouragingly, the pro forma adjusted Ebitda margin grew by 181 basis points to 7.8 per cent. It made progress on its balance sheet, moving from a £417mn in net debt to a £311mn net cash pile thanks to the float proceeds and capitalisation of old shareholder loans. The results were clouded by a cautious outlook regarding the Iran war, putting pressure on supply chains. The shares sit about 18 per cent below the 475p listing price. The turnaround is impressive and the strategy appears to be working, but with inflation and geopolitics, we think there are other, easier entry points. Valeria Martinez BUY: AG Barr (BAG) Despite 12 months of portfolio reorganisation, AG Barr grew sales and profits. Pricing pushed revenue at the Scottish drinks group 4 per cent higher year on year, while strong cost management added an extra £10mn to operating profit. The group is focused on diversifying its portfolio, with the long-term goal to double the size of the business. After selling its Strathmore water business, AG Barr made several acquisitions including turmeric shot brand Innate-Essence as well as Frobishers and Fentimans juice brands. its core Irn Bru brand now makes up 32 per cent of total sales, down from 43 per cent five years ago. The buying streak shows no signs of slowing. With a price-to-book ratio of 2.3 times, AG Barr shares remain below the soft drinks sector average and continue to look like good value for the growth on offer. Erin Withey