Think the London stock market lacks exciting tech stories? Think again – specifically, of Raspberry Pi (LSE: RPI). Raspberry Pi shares have been going gangbusters lately on the back of interest in the company’s technology as a potential AI solution for users on a much tighter budget than the customers of, say, Nvidia.

Here’s how the share’s been doing

Since the start of the year, Raspberry Pi shares have soared.

Specifically, they are up by 185%.

So, £100 put in at the beginning of the year ought to be worth around £285. Someone who had the foresight (and cash) to put in £20k would now be sitting on a holding worth £57k.

That, in my opinion, is a brilliant result already.

But could there potentially still be more to come – and ought I to invest?

The long-term investment case remains sound

I have liked the look of Raspberry Pi’s business since it came to the market.

It successfully occupies a distinctive niche in the IT industry. It has an asset-light model and is set to benefit from long-term demand growth.

So, why did I not buy before?

What held me back was the price. I liked the idea of owning some Raspberry Pi shares – but was unwilling to pay what they cost.

Since then, the share price has soared.

That reflects changes in how the stock market is thinking about what AI could mean for Raspberry Pi. So, it makes sense for me to revisit my previous view in deciding whether the business’s current outlook potentially merits the valuation it now attracts.

Doing well – but what about the future?

This month, the company issued an upbeat trading update.

It said that trading in the first half of the year so far has been strong. Profitability is expected to be materially ahead of the same period last year.

Raspberry Pi expects adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) to be at least $38m. That is roughly double the $19.4m achieved in the equivalent period last year.

Such a strong performance underlines the narrative that demand for Raspberry Pi’s offering is strong and provides an excellent basis for future growth.

One risk is the elevated cost of DRAM memory. Given the heated market surrounding AI, lots of industrial users are scrambling for components.

That includes Raspberry Pi and has pushed up some of its costs, although the company is optimistic that it can resolve those challenges over time.

I like this share – but not at this price

The future looks bright for Raspberry Pi and I see substantial ongoing growth opportunities over the long term.

Still, given that Raspberry Pi shares sell for 103 times earnings, I am clearly not alone in that regard.

Frankly, that price is too high for my tastes.

So, I am passing over this opportunity for now and looking for other tech opportunities I feel offer a more attractive valuation.

Should you invest £5,000 in Raspberry Pi Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Raspberry Pi Plc made the list?

Christopher Ruane does not hold any positions in the companies mentioned.