ARM Holdings (LON:ARM), a subsidiary of Softbank (OTC:SFTBY), has acquired a minority stake in Raspberry Pi, further solidifying their long-standing alliance. This strategic move, announced today, signals a significant investment in the Internet of Things (IoT) industry and promises potential benefits for IoT developers worldwide.
Raspberry Pi, known for providing affordable computing solutions, caters to the growing demand for edge computing driven by complex IoT and AI applications. The company's most recent product, Raspberry Pi 5, released at the end of October, serves a broad spectrum of users from hobbyists to commercial developers.
The new investment by ARM follows an earlier investment by Sony (NYSE:SONY) of £4.2 million in Raspberry Pi. The latest Raspberry Pi device features a Broadcom (NASDAQ:AVGO) chip that includes ARM cores and its proprietary microcontroller silicon, also based on ARM cores.
Eben Upton, CEO of Raspberry Pi, and Paul Williamson of ARM have both emphasized the shared goal of democratizing computing access around the globe. They aim to foster swift innovation and encourage the global uptake of high-performance IoT devices. The duo underscored the critical role of ARM-based platforms like Raspberry Pi in achieving this objective.
Upton acknowledged this investment as a crucial milestone in their ongoing collaboration with ARM. The partnership has resulted in a series of popular ARM-based Raspberry Pi products. In related news, Softbank recently listed a 10% stake in ARM on the Nasdaq stock market. However, the terms of ARM's investment in Raspberry Pi have not been made public yet.
InvestingPro Insights
In light of the recent developments, InvestingPro data highlights a few key metrics for Raspberry Pi. The company has been profitable over the last twelve months and has demonstrated a high return over the last decade. This is reflected in the company's Price / Book ratio of -3.01 as of Q3 2023, indicating a strong return on assets.
In addition, Raspberry Pi's P/E Ratio (Adjusted) stands at -1.34, indicating that the company is trading at a low earnings multiple. This suggests that the company's shares may be undervalued, presenting a potential opportunity for investors.
InvestingPro Tips also suggest that Raspberry Pi holds more cash than debt on its balance sheet, which is a positive sign for the company's financial health. Furthermore, the company operates with a high return on assets, which is a key indicator of profitability.
For those seeking more detailed analysis and additional tips, InvestingPro offers a comprehensive range of insights. This includes fourteen more tips specifically tailored for Raspberry Pi, providing a more in-depth understanding of the company's financial performance and potential investment opportunities. Remember, knowledge is power when it comes to investing.
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