While S&P 500 tech stocks Nvidia, AMD, and Micron are flying in 2026, there’s a £7 FTSE 250 stock that’s outperforming all these names. I’m talking about Raspberry Pi (LSE: RPI), which has gained about 140% year to date.

So what’s this stock all about? And should investors consider buying it?

Why’s the stock soaring?

Raspberry Pi designs and develops high-performance, low-cost, single-board computers (SBCs). These are tiny, credit card-sized computers that cost around £50 and don’t have a case or a monitor.

Now, the reason the stock’s soaring right now is that users have worked out that Raspberry Pi’s SBCs can be quite useful for artificial intelligence (AI0 applications. Recently, people have been using them to power OpenClaw virtual assistants.

As a result, the company’s received a lot of publicity on social media. This has boosted sales and earnings – revenue for 2025 was up 25% year on year to $323m while adjusted earnings per share was up 35% to 14.5 cents.

It has also led to significant interest in the stock, with buyers flooding in recently (it has been a little ‘memey’). This has pushed its share price up dramatically.

One other thing worth noting is that in the company’s 2025 results, it said that it saw high demand for its semiconductors last year (its other product line). For the first time, semiconductors sales (8.4m units) eclipsed sales of boards and modules.

So this is no longer just a play on SBCs. It’s also a chip stock (and chip stocks are the hottest area of the market right now).

Is there an opportunity here?

Is the stock worth a look today? Well it could be, if an investor’s seeking exposure to high momentum growth shares.

Personally though, I feel now’s not the best time to be investing in this technology company. Because after its share price surge this year, it now looks very expensive from a valuation perspective.

At present, the forward-looking price-to-earnings (P/E) ratio here is about 80. That earnings multiple doesn’t leave any room at all for a slowdown in growth or an operational setback (such as an increase in supply chain costs).

To my mind, the stock’s overvalued at current levels. I could get my head around a P/E ratio of 30 or maybe even 40, but not 80.

It seems analysts agree that the stock’s overvalued right now. At present, the average analyst price target is £3.90 – that’s about 40% below the current share price.

So while this UK-listed tech company is no doubt exciting (and has plenty of growth potential), I’m not convinced it’s the best investment today given the valuation. If the share price and valuation were to come down though, there may be an opportunity to consider.