Rasberry Pi surges as Hedgeye goes long

(Sharecast News) - Raspberry Pi shot higher on Tuesday after Hedgeye Risk Asset Management recommended buying shares of the maker of high-performance, low-cost single-board computers (SBCs). Although the report from Hedgeye came out on Monday, there wasn't any other obvious reason for the pop in Raspberry Pi's share price on Tuesday afternoon.

Hedgeye said that for a small-cap play exposed to AI agents, Raspberry Pi "may look interesting" as it's likely positioned as a primary hardware beneficiary of the OpenClaw cycle.

The firm, which is long Raspberry Pi, said that while it is still a majority-industrial business, agentic AI adoption could shift the company's volume and revenue more towards consumers and developers.

Hedgeye said channel checks suggest Raspberry Pi's key products are selling well despite recent price hikes. It also pointed to the fact that social media sentiment towards Raspberry Pi for AI agent use cases has been positive.

Hedgeye also recommended buying Chinese technology firm Tencent, having previously been short the shares. It said that after falling behind Alibaba and TikTok owner ByteDance in large language models, the agentic AI opportunity in China is putting the company back into pole position.

It said that through control of its own agents, Tencent has an opportunity to protect WeChat usage and create new monetisation opportunities for cloud and enterprise business.

At 1445 GMT, Raspberry Pi shares were up 21% at 351.40p.

According to Stockomendation, there are four active shorts in Raspberry Pi: Walleye Capital, Voleon Capital Management, Marshall Wace and JPMorgan Asset Management. They have short positions of 0.58%, 0.6%, 0.62% and 0.9%, respectively.