Last week, I threw caution to the wind and added SpaceX stock to my portfolio. However, I also bought another three growth shares.
They’re quite a mixed bag, I must admit, and two of them were additions (stocks I already owned). Here’s why I’m bullish on this trio, which are all on the London Stock Exchange. Each is worth a closer look, in my opinion.
Raspberry Pi
First, I increased my position in Raspberry Pi (LSE:RPI), the maker of low-cost computers and modules. The FTSE 250 tech firm, which has a £1.2bn market-cap, had slipped almost 20% since mid-August, enabling me to buy more shares at 575p each. From June’s peak.
Raspberry Pi’s now nosedived roughly 42%.
While the firm originally gained fame with hobbyists, it’s the growth potential with equipment manufacturers and industrial customers that excites me. Its modules are in high demand across robotics, factory automation, smart security cameras, medical devices, and more.
In June, the company said 2026 profits will be “significantly ahead” of market expectations, boosted by AI-related demand. Analysts at Jefferies forecast strong revenue and earnings growth in 2027 too.
In the longer term, we continue to expect edge AI-related demand for boards, as well as the company’s small but growing MCU (microcontroller) business, to become growth drivers.
Jefferies
The biggest challenge is that margins are expected to come under pressure next year due to the memory chip shortage. Raspberry Pi’s tapping debt facilities to secure supply, but there’s uncertainty here due to the memory-hungry AI boom.
However, this is still a well-run, innovative, founder-led business. With an eye on the long term, CEO Eben Upton envisions the company becoming the “default embedded host for agentic AI“, as AI inference migrates to the edge over the next decade.
Given the long-term potential, I’m willing to overlook a somewhat high forward price-to-earnings (P/E) ratio of 48.
Applied Nutrition
The second FTSE 250 stock I added to was Applied Nutrition (LSE:APN). I bought more shares at 318p each.
The sports nutrition firm just had a cracking year, with revenue soaring 50% to £160m in the 12 month to 31 July. That was ahead of market expectations, as was adjusted EBITDA of £43.3m.
Sales are expected to be around £205m this year, but margins will be lower due to higher whey protein costs. This adds a bit of risk, especially with the inflationary Middle East conflict still unresolved.
Again though, taking the long view, I’m happy to own more shares. Applied Nutrition’s growing strongly worldwide, as the dual fitness and GLP-1 revolutions produce millions more consumers looking for high-quality, trusted protein and supplements.
Penny stock
Finally, I bought Hardide (LSE:HDD) shares, which makes protective coatings that improve the durability of industrial components.
This is the most speculative buy at 95p because Hardide’s market-cap is just £74m, making it a penny stock.
However, the firm has real momentum, with revenue expected to more than double this fiscal year to £13.5m. It then plans to more than double annual revenues again over the next two to three years.
A key North American energy customer is driving growth, which adds concentration risk. But Hardide’s patented coatings method has far wider industrial applications, including in semiconductors as well as the Middle East oil sector.
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?
Ben McPoland owns shares in Applied Nutrition, Hardide, Raspberry Pi, and SpaceX.
This story originally appeared on Motley Fool
