Could Jefferies’ Optimism on AI Give Tuya (TUYA) New Momentum in the IoT Race?

• Tuya Inc. announced that it will report its unaudited second quarter 2025 financial results after market close on August 26, with a management conference call scheduled that evening and a webcast available on its investor relations site.
• Jefferies initiated coverage on Tuya, highlighting its position as the world's largest third-party IoT platform and the potential for generative artificial intelligence to enhance both smart device offerings and revenue streams.
• We'll examine how Jefferies' positive outlook on Tuya's AI-driven IoT expansion could influence the company's investment narrative.

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Tuya Investment Narrative Recap

To be a Tuya shareholder, you need to believe in the company's ability to execute on AI-driven growth across the world’s largest third-party IoT platform. While Jefferies’ new coverage and Tuya’s upcoming earnings report have brought positive attention, the most important short-term catalyst remains the successful commercialization of AI features, and the main risk is that these early-stage AI solutions may not gain traction fast enough. Recent news does not materially change these underlying factors.

Of the recent announcements, Tuya’s launch of new AI+IoT development platforms during its Global Developer Summit stands out for its relevance. This move directly supports the growth narrative highlighted by Jefferies, as it could help accelerate developer engagement and the rollout of advanced products, working in tandem with Tuya’s broader AI integration efforts.

By contrast, what investors also need to keep an eye on is the risk that revenue growth could slow if the developer ecosystem does not rapidly adopt Tuya’s new AI capabilities...

Read the full narrative on Tuya (it's free!)

Tuya's narrative projects $436.7 million in revenue and $75.6 million in earnings by 2028. This requires 11.9% yearly revenue growth and a $56.0 million increase in earnings from the current $19.6 million.

Uncover how Tuya's forecasts yield a $3.28 fair value, a 29% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided 11 fair value estimates for Tuya, ranging widely from US$2.11 to a striking US$7,000. Against these diverse views, the company’s focus on commercializing generative AI remains a key factor that could shape future performance. Tap into more perspectives and see why opinions can be so different.

Explore 11 other fair value estimates on Tuya - why the stock might be worth 17% less than the current price!

Build Your Own Tuya Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Tuya research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Tuya research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Tuya's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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